Analytics With MT5

MT5 TRADING MANUAL
Table of Contents
Analytics............................................................................................................... 14
Objects................................................................................................................. 15
Object Properties............................................................................................... 15
Common......................................................................................................... 16
Parameters..................................................................................................... 16
Visualization................................................................................................... 17
Levels............................................................................................................. 18
Operations with Objects......................................................................................... 19
Object Plotting................................................................................................... 19
Working with Objects in a Chart..........................................................................19
Context Menu..................................................................................................... 19
Lines..................................................................................................................... 20
Horizontal Line....................................................................................................... 21
Parameters......................................................................................................... 21
Vertical Line.......................................................................................................... 22
Parameters......................................................................................................... 22
Trendline.............................................................................................................. 23
Drawing............................................................................................................. 23
Manipulations..................................................................................................... 23
Parameters......................................................................................................... 23
Trendline by Angle................................................................................................. 25
Parameters......................................................................................................... 25
Cycle Lines............................................................................................................ 26
Parameters......................................................................................................... 26
Arrowed Line........................................................................................................ 27
Drawing............................................................................................................. 27
Manipulations..................................................................................................... 27
Parameters......................................................................................................... 27
Channels................................................................................................................ 29
Equidistant Channel............................................................................................... 30
Drawing............................................................................................................. 30
Manipulations..................................................................................................... 30
Parameters......................................................................................................... 30
Standard Deviation Channel................................................................................... 32
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Drawing............................................................................................................. 32
Manipulations..................................................................................................... 32
Parameters......................................................................................................... 32
Regression Channel................................................................................................ 34
Drawing............................................................................................................. 34
Manipulations..................................................................................................... 34
Parameters......................................................................................................... 34
Andrews' Pitchfork................................................................................................. 36
Drawing............................................................................................................. 36
Manipulations..................................................................................................... 36
Parameters......................................................................................................... 37
Gann Tools............................................................................................................. 38
Gann Line.............................................................................................................. 39
Drawing............................................................................................................. 39
Manipulations..................................................................................................... 39
Parameters......................................................................................................... 39
Gann Fan............................................................................................................... 40
Drawing............................................................................................................. 41
Manipulations..................................................................................................... 41
Parameters......................................................................................................... 41
Gann Grid.............................................................................................................. 43
Drawing............................................................................................................. 43
Manipulations..................................................................................................... 43
Parameters......................................................................................................... 43
Fibonacci Tools....................................................................................................... 45
Fibonacci Retracement.......................................................................................... 46
Drawing............................................................................................................. 46
Manipulations..................................................................................................... 46
Levels................................................................................................................ 47
Parameters......................................................................................................... 47
Fibonacci Time Zones............................................................................................. 48
Drawing............................................................................................................. 48
Manipulations..................................................................................................... 48
Parameters......................................................................................................... 48
Fibonacci Fan........................................................................................................ 50
Drawing............................................................................................................. 50
Manipulations..................................................................................................... 50
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Parameters......................................................................................................... 50
Fibonacci Arcs....................................................................................................... 52
Drawing............................................................................................................. 52
Manipulations..................................................................................................... 52
Parameters......................................................................................................... 52
Fibonacci Channel................................................................................................. 54
Drawing............................................................................................................. 54
Manipulations..................................................................................................... 54
Parameters......................................................................................................... 54
Fibonacci Expansion.............................................................................................. 56
Drawing............................................................................................................. 56
Manipulations..................................................................................................... 56
Levels................................................................................................................ 57
Parameters......................................................................................................... 57
Elliott Tools............................................................................................................ 58
Elliott Wave Theory............................................................................................... 58
Elliott Wave Theory and Fibonacci Numbers.........................................................60
Characteristics of Waves..................................................................................... 61
Construction of Waves............................................................................................ 62
Shapes................................................................................................................... 63
Rectangle.............................................................................................................. 63
Manipulations..................................................................................................... 63
Parameters......................................................................................................... 63
Triangle................................................................................................................. 65
Manipulations..................................................................................................... 65
Parameters......................................................................................................... 65
Ellipse................................................................................................................... 67
Manipulations..................................................................................................... 67
Parameters......................................................................................................... 67
Arrows.................................................................................................................. 69
Parameters......................................................................................................... 69
Graphical Objects................................................................................................... 71
Text...................................................................................................................... 72
Manipulations..................................................................................................... 72
Parameters......................................................................................................... 72
Text Label............................................................................................................. 73
Manipulations..................................................................................................... 73
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Parameters......................................................................................................... 73
Button.................................................................................................................. 75
Manipulations..................................................................................................... 75
Parameters......................................................................................................... 75
Chart.................................................................................................................... 77
Manipulations..................................................................................................... 77
Parameters......................................................................................................... 77
Bitmap.................................................................................................................. 79
Manipulations...................................................................................................... 79
Parameters......................................................................................................... 79
Bitmap Label.......................................................................................................... 79
Manipulations...................................................................................................... 79
Parameters......................................................................................................... 80
Edit....................................................................................................................... 81
Manipulations...................................................................................................... 81
Parameters......................................................................................................... 81
Event.................................................................................................................... 82
Manipulations...................................................................................................... 82
Parameters......................................................................................................... 82
Rectangle Label...................................................................................................... 82
Manipulation....................................................................................................... 83
Parameters......................................................................................................... 83
Technical Indicators................................................................................................ 84
Parameters......................................................................................................... 84
Colors................................................................................................................ 85
Levels................................................................................................................ 85
Scale.................................................................................................................. 86
Visualization....................................................................................................... 87
Context Menu...................................................................................................... 87
Trend Indicators...................................................................................................... 88
Adaptive Moving Average......................................................................................... 88
Calculation......................................................................................................... 89
Average Directional Movement Index.........................................................................90
Calculation......................................................................................................... 90
Average Directional Movement Index Wilder...............................................................91
Calculation......................................................................................................... 91
Bollinger Bands..................................................................................................... 93
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Calculation......................................................................................................... 93
Double Exponential Moving Average...........................................................................95
Calculation......................................................................................................... 95
Envelopes.............................................................................................................. 96
Calculation......................................................................................................... 96
Fractal Adaptive Moving Average............................................................................... 97
Calculation......................................................................................................... 97
Ichimoku Kinko Hyo............................................................................................... 99
Moving Average..................................................................................................... 100
Calculation....................................................................................................... 101
Simple Moving Average (SMA)...........................................................................101
Exponential Moving Average (EMA)....................................................................101
Smoothed Moving Average (SMMA).....................................................................101
Linear Weighted Moving Average (LWMA)...........................................................102
Parabolic SAR....................................................................................................... 103
Calculation....................................................................................................... 103
Standard Deviation................................................................................................ 105
Calculation....................................................................................................... 105
Triple Exponential Moving Average..........................................................................106
Calculation....................................................................................................... 106
Variable Index Dynamic Average.............................................................................. 108
Application....................................................................................................... 108
Calculation....................................................................................................... 108
Oscillators............................................................................................................ 110
Average True Range............................................................................................... 111
Calculation....................................................................................................... 111
Bears Power......................................................................................................... 111
Application....................................................................................................... 112
Calculation....................................................................................................... 112
Bulls Power.......................................................................................................... 113
Application....................................................................................................... 113
Calculation....................................................................................................... 113
Chaikin Oscillator.................................................................................................. 115
Calculation....................................................................................................... 116
Commodity Channel Index...................................................................................... 117
Calculation....................................................................................................... 117
DeMarker............................................................................................................. 119
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Calculation....................................................................................................... 119
Force Index.......................................................................................................... 121
Calculation....................................................................................................... 121
MACD.................................................................................................................. 123
Crossovers........................................................................................................ 123
Overbought/Oversold Conditions.........................................................................123
Divergence........................................................................................................ 123
Calculation....................................................................................................... 124
Momentum........................................................................................................... 125
Calculation....................................................................................................... 125
Moving Average of Oscillator...................................................................................126
Calculation....................................................................................................... 126
Relative Strength Index......................................................................................... 126
Calculation....................................................................................................... 127
Relative Vigor Index.............................................................................................. 128
Calculation....................................................................................................... 128
Stochastic Oscillator.............................................................................................. 130
Calculation....................................................................................................... 130
Triple Exponential Average..................................................................................... 132
Calculation....................................................................................................... 132
Williams Percent Range........................................................................................ 134
Calculation....................................................................................................... 134
Volume Indicators................................................................................................. 136
Accumulation/Distribution..................................................................................... 137
Calculation....................................................................................................... 137
Money Flow Index................................................................................................. 139
Calculation....................................................................................................... 139
On Balance Volume............................................................................................... 141
Calculation....................................................................................................... 142
Volumes............................................................................................................... 143
Bill Williams' Indicators.......................................................................................... 144
Accelerator Oscillator............................................................................................ 145
Calculation....................................................................................................... 146
Alligator.............................................................................................................. 147
Calculation....................................................................................................... 148
Awesome Oscillator............................................................................................... 149
Signals to Buy.................................................................................................... 149
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Signals to Sell.................................................................................................... 149

Calculation....................................................................................................... 150
Fractals............................................................................................................... 151
Gator Oscillator.................................................................................................... 152
Calculation....................................................................................................... 152
Market Facilitation Index...................................................................................... 153
Calculation....................................................................................................... 153
Macroeconomic Indicators...................................................................................... 154
Macroeconomic Indicators of USA............................................................................155
Atlanta Fed Index/Index of manufacturing in states under jurisdiction of the Atlanta
Federal Reserve.................................................................................................... 156
Average Hourly Earnings........................................................................................ 156
Average Workweek................................................................................................ 156
Beige Book.......................................................................................................... 156
Building Permits.................................................................................................... 157
Business Inventories............................................................................................ 157
Capacity Utilization.............................................................................................. 157
Chicago PMI Index................................................................................................. 157
Construction Spending......................................................................................... 158
Consumer Confidence (CCI)..................................................................................158
Consumer Credit.................................................................................................. 158
Consumer Price Index (CPI).................................................................................... 159
Current Account.................................................................................................. 159
Durable Goods Orders.......................................................................................... 159
Employment Cost Index........................................................................................ 159
Existing Home Sales............................................................................................. 160
Export Prices........................................................................................................ 160
Factory Orders.................................................................................................... 160
Federal Budget..................................................................................................... 160
Federal Funds Rate.............................................................................................. 161
GDP Deflator........................................................................................................ 161
Gross Domestic Product (GDP)..............................................................................161
Help-Wanted Index................................................................................................ 161
Housing Starts...................................................................................................... 162
Import Prices........................................................................................................ 162
Industrial Production........................................................................................... 162
ISM Index............................................................................................................ 163
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Jobless Claims (Initial Claims)...............................................................................163

Leading Indicators Index........................................................................................ 163
Money Supply...................................................................................................... 164
New Home Sales................................................................................................... 164
Non-farm Payrolls................................................................................................ 164
Personal Income................................................................................................... 164
Personal Spending................................................................................................. 165
Philadelphia Fed Index.......................................................................................... 165
Producer Price Index............................................................................................. 165
Productivity........................................................................................................ 165
Real Earnings (Real average weekly earnings)...........................................................166
Redbook.............................................................................................................. 166
Retail Sales......................................................................................................... 166
Trade Balance....................................................................................................... 167
Unemployment Rate.............................................................................................. 167
Unit Labor Cost..................................................................................................... 167
University of Michigan Consumer Confidence Index................................................167
Wholesale Inventories.......................................................................................... 168
Macroeconomic Indicators of European Union...........................................................169
Balance of Payments............................................................................................. 170
Capital and Financial Account.................................................................................170
Consumer Confidence Indicator (CCI)....................................................................170
Current Account................................................................................................... 170
Economic Sentiment Indicator................................................................................ 171
Harmonized Index of Consumer Price (HICP)..........................................................171
IFO Business Climate............................................................................................ 172
Industrial Confidence Indicator...............................................................................172
Labor Cost Index.................................................................................................. 172
Money Supply Growth.......................................................................................... 173
PMI Manufacturing............................................................................................... 173
PMI Services........................................................................................................ 173
Purchasing Managers Index (PMI)..........................................................................174
Refinancing Tender Rate...................................................................................... 174
Retail Trade Confidence Indicator...........................................................................174
Unemployment Rate.............................................................................................. 174
Macroeconomic Indicators of United Kingdom...........................................................176
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Average Earning Growth....................................................................................... 177

Balance of Payments............................................................................................ 177
Bank of England Minutes........................................................................................ 177
CBI Distributive Trades......................................................................................... 178
CBI Industrial Order Expectations..........................................................................178
CBI Industrial Trends............................................................................................ 178
Current Account................................................................................................... 178
Industrial Output (Industrial Production)..................................................................179
M4 Money Supply................................................................................................. 179
Major Banks Mortgage Approvals...........................................................................179
Manufacturing Output............................................................................................ 180
Net Consumer Credit............................................................................................ 180
Non-Eu Trade Balance.......................................................................................... 180
Producer Input Prices (PPI Input)..........................................................................181
Producer Output Prices (PPI Output).....................................................................181
Public Sector Net Cash Requirement (PSNCR)........................................................181
Repo Rate........................................................................................................... 181
Retail Price Index.................................................................................................. 182
Retail Sales......................................................................................................... 182
Rightmove House Price Index (HPI).......................................................................182
Unemployment (Claimant count rate)....................................................................182
Unit Wage Costs................................................................................................... 183
Macroeconomic Indicators of Japan.........................................................................184
All Industry Activity Index...................................................................................... 185
Balance of Payments............................................................................................. 185
Consumer Price Index (CPI)..................................................................................185
Corporate Goods Price Index (CGPI)......................................................................185
Industrial Production Index..................................................................................186
Leading and Coincident Indices of Business Conditions...........................................186
Machinery Orders................................................................................................ 186
Retail Sales......................................................................................................... 187
Tankan Survey..................................................................................................... 187
Tertiary Industry Index........................................................................................... 187
Trade Balance...................................................................................................... 187
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Unemployment..................................................................................................... 188
Wholesale Price Index (WPI)................................................................................... 188
Macroeconomic Indicators of Germany....................................................................189
Balance of Trade.................................................................................................. 190
Current Account.................................................................................................. 190
Gross Domestic Product(GDP)............................................................................... 190
IFO Survey.......................................................................................................... 191
Import Prices....................................................................................................... 191
M3 Money Supply................................................................................................. 191
Manufacturing Orders.......................................................................................... 192
Manufacturing Production.................................................................................... 192
Producer Price Index (PPI)....................................................................................192
Retail Sales......................................................................................................... 192
Unemployment.................................................................................................... 192
Wholesale Index.................................................................................................. 193
ZEW Indicator of Economic Sentiment...................................................................193
Macroeconomic Indicators of Switzerland.................................................................194
3 Month LIBOR Range........................................................................................... 195
Consumer Price Index (CPI).................................................................................... 195
Kof Leading Indicator........................................................................................... 196
Retail Sales.......................................................................................................... 196
SNBs Quarterly Monetary Policy Assessment..........................................................196
Trade Balance...................................................................................................... 197
Unemployment Rate............................................................................................ 197
ZEW Economic Expectations.................................................................................197
Macroeconomic Indicators of Australia.....................................................................199
Building Approvals............................................................................................... 200
Construction Work Done....................................................................................... 200
Export Price Index............................................................................................... 201
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Home Loans......................................................................................................... 201

House Price Index................................................................................................ 201
Import Price Index................................................................................................ 202
Labour Price Index............................................................................................... 202
NAB Business Confidence...................................................................................... 202
New Motor Vehicle Sales....................................................................................... 202
Purchasing Managers Index (PMI).............................................................................203
RBA Cash Target................................................................................................... 203
Retail Sales......................................................................................................... 204
Service PMI.......................................................................................................... 204
Trade Balance...................................................................................................... 204
Westpac-Melbourne Institute Coincident Index......................................................205
Westpac-Melbourne Institute Leading Index...........................................................205
Westpac Consumer Confidence............................................................................. 205
Macroeconomic Indicators of Canada.......................................................................206
Average Weekly Earnings...................................................................................... 207
BOC Interest Rate Decision................................................................................... 207
Building Permits.................................................................................................. 207
Capacity Utilization............................................................................................. 207
Core CPI.............................................................................................................. 208
Current Account.................................................................................................. 208
Housing Starts..................................................................................................... 209
International Security Transactions.......................................................................209
Ivey Purchasing Managers Index............................................................................209
Leading Indicators............................................................................................... 209
Manufacturing Survey Shipments..........................................................................210
New Housing Price Index........................................................................................ 210
New Vehicle Sales................................................................................................ 210
Overnight Rate Target.......................................................................................... 210
Payroll Employment............................................................................................. 211
Raw Materials Price Index...................................................................................... 211
Retail Sales......................................................................................................... 211
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Retail Sales Excluding Motor Vehicles....................................................................211

Trade Balance...................................................................................................... 212
Unit Labor Cost.................................................................................................... 212
Wholesale Inventories.......................................................................................... 212
Wholesale Sales................................................................................................... 213
Macroeconomic Indicators of China.........................................................................214
Customer Price Index (CPI)...................................................................................215
Retail Sales......................................................................................................... 216
Macroeconomic Indicators of New Zealand...............................................................217
Average Hourly Earnings....................................................................................... 218
Building Permits.................................................................................................. 218
Food Price Index.................................................................................................. 218
Labour Cost Index................................................................................................. 219
Manufacturing Activity / index of business activity in industry................................219
NBNZ Business Confidence....................................................................................220
Producer Input Prices (PPI Input)..........................................................................220
Producer Output Prices (PPI Output).....................................................................220
RBNZ Meeting Announcement...............................................................................220
Retail Sales......................................................................................................... 221
Trade Balance...................................................................................................... 221
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Analytics
Technical indicators and objects are built into the terminal for analytical purposes. They are
attached directly to the chart and allow to forecast further price changes. Indicators are
attached automatically, while objects are applied manually. That is why when working with
objects, it is important to correctly draw them. On the other hand, parameters of indicators
can be set up manually as well. Technical indicators can have different settings for different
symbols or periods.
The use of technical indicators and objects allows reasonable opening and closing of trade
positions, placing and modifying of pending orders. Besides, using of analytical tools allows
performing systematic trading activities thus reducing the influence of human emotions. Along
with built-in technical indicators, custom indicators written in MetaQuotes Language 5
(MQL5) can be used for analytical purposes.
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In addition to the analysis tools described above, the client terminal provides you with
the economic calendar, where traders can observe different macroeconomic indicators. All
the events of the calendar can be displayed on a chart. It allows analyzing their influence on
the price movement and forecasting its future direction.
Objects
Objects in the terminal are objects that are imposed manually to a chart. These objects are
used for analytical purposes. They include:
Lines various lines (trend lines, horizontal, cycle lines, etc.) attached to a chart of
prices or indicators;
Channels various channels (equidistance, regression channel, etc.) attached to a chart
of prices or indicators;
Gann Tools a set of technical analysis tools developed by W. D. Gann;
Fibonacci Tools a set of technical analysis tools developed on the basis of L. Fibonacci
number sequence;
Elliott Tools a set of technical analysis tools based on Elliott Wave Theory;
Shapes geometrical shapes (rectangle, triangle and ellipse) that allow to mark various
areas in the price chart;
14
Arrows symbols (arrows, check and stop signs) that allow to mark the most significant
points in the chart;
Graphical objects various graphical objects (text, text labels, buttons, etc.) used for
adding marks or comments to a chart.
All objects are grouped in the "Insert" menu and in the "Line Studies" toolbar. Having selected
an object in the list and set a point in the chart (or in an indicator window), one can impose
the tool.
The drawing of some objects requires setting more than one point. The object will not appear in the chart until all
necessary points are set.
After the object has been created, it can be moved or modified. To do so, one has to select
the object first. If the "Select object by single mouse click" parameter is set in terminal
settings, one has to click once with the left mouse button on any element of the object. If
not, the double-click should be used. The object can be considered as selected if square
markers or frames appear. The markers are intended for moving of objects and changing their
drawing parameters.
Thus, for example, to change the Fibonacci Fan location, one needs to hold its central marker
with the left mouse button and move the cursor. And moving of any of its extreme markers
will result in changing of the object drawing parameters. Terminal allows to create copies of
various object very fast. To do so, one has to select the object and, holding Ctrl pressed,
move it using the central marker.
All objects applied to a chart become unnecessary sooner or later, and they can be removed
by commands of the context menu. Besides, the Backspace key allows to remove objects in
series. In future, all removed objects can be restored. To do so, it is necessary to execute the
"Undo Delete" command of the object context menu, the "Objects - Undo Delete" command of
the "Charts" menu, or use accelerating keys Ctrl+Z.
Object Properties
Every object has its specific properties. Properties can differ depending on the object. To
manage the properties of an object, one should select the object and execute its context
menu command of "
Properties". One can also execute the "Objects - Objects List"
command in the "Charts" menu or press Ctrl+B. After that a window of the same name will
appear. In this window one should select an object and press "Properties". In both cases a
window of object properties containing several tabs will appear.
Common
The "Common" tab contains common settings of objects.
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The following is available here:

Name the object unique name within one chart that is set for the object
automatically. It can be changed if another name is entered in this field. Such names make it
easy to mark the object out among many others of the same type;
Description description/text contents of the object that also serve for marking it out
among many others of the same type. Besides, these descriptions can be shown in the chart if
the "Show object descriptions" option is enabled in the chart settings;
Style object lines style. Color, forms and thickness of lines can be chosen here;
Draw object as background draw object in the background, behind the chart. Being
enabled, this option provides filling of the objects like shapes or channels (excluding
Fibonacci Channel) with color.
Disable selection disable the possibility of object selection. This possibility is
intended for working with control objects ("Button", "Entry field", "Graphical label"). Enabling
this option for them grants the possibility to change the state of buttons, graphical labels, as
well as to enter values in entry fields.
Parameters
In the "Parameters" tab one can change coordinates of the object control points. In the "Date"
fields time coordinates of an object control points are set, and coordinates of anchoring to
vertical axis of a chart of indicator should be given in the "Value" fields. An object can have
from one to three coordinates.
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For some objects, additional options are used in the "Parameters" tab:
Angle in degrees angle of the object slope anticlockwise in degrees;
Scale ratio between units of vertical (pips) and horizontal (bars) axes of the object.
Normally, the number of pixels in a unit of the horizontal axis (time) differs from that of the
vertical axis (prices) when chart are drawn. One-to-one scale brings them to the same value.
For certain objects, changing of this parameter changes the ratio;
Arrow code code of an object;
Ray right/left options of showing trendlines as rays in specified directions;
Anchor one of the chart corners at which the text label is anchored;
X-distance: horizontal distance between the anchor corner of the window and the
text label in pixels;
Y-distance: vertical distance between the anchor corner of the window and the text
label in pixels.
Visualization
The object visualization mode for different timeframes (periods) can be changed in the
"Visualization" tab.
17
The object will then be shown only for the selected timeframes. This can be useful when the
tool has different settings for different timeframes. If the field "All timeframes" is selected,
the object will be shown for all timeframes.
Levels
The "Levels" tab is specifically used only for Fibonacci tools and Andrews' Pitchfork. The list of
the tool levels is given here in form of a table.
The values of the levels can be changed or deleted (the "Delete" button). A new level can be
added by pressing of the "Add" button. The "Defaults" button resets the initial values. The
"Style" field that allows to set up the color, appearance, and thickness of levels of the object
is located in the lower part of the tab.
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Operations with Objects

For placing objects one can use commands of the "Objects" submenu in the "Insert" menu. Its
upper part contains five recently used objects, after that objects are divided to groups.
Objects can be applied to a chart using the "Line Studies" toolbar.
Object Plotting
Object Points
Depending on the type, objects may have different numbers of changing and moving points.
As a rule the point of an object moving is its central point. For creation of most objects one
or several initial points should be set. Then holding a mouse button direction and size are set.
More information about drawing and changing objects in the chart is contained in the
description of each object.
Magnet Sensitivity
Magnet sensitivity of object points can be set in terminal settings. When moving a point to the
area within the distance specified in "Magnet sensitivity" from one of bar prices ("Open",
"High", "Low" or "Close"), this point will be automatically moved to this price level. This option
is included for the convenient positioning of objects in a chart.
Opening Properties
If the "Show properties after creation" option is enabled in terminal settings, immediately
after applying an object to a chart a window of its properties will be opened.
When dragging an object using its moving point (central point) magnifying doesn't work.
Working with Objects in a Chart
Creating Object Copies

In order to create a copy of an object, one should catch one of its points and holding "Ctrl"
pressed move the mouse cursor. A copy of the object will be created.
Group Moving
In order to move a group of objects, one should select them and holding the "Alt" button
pressed move a point of one of them using the mouse.
Single-Click Selection
In order to be able to select objects by a single mouse-click, the "Select object by single
mouse click" option should be enabled in terminal settings.
Objects can be also managed using the "Objects List" window that can be opened by a
corresponding command of the "Charts"menu or the context menu of a chart, or by pressing
hot keys "Ctrl+B".
Context Menu
Each object has it context menu with the following commands available:
Object properties open the selected object properties window;
Objects List open the window with the list of objects;
Delete delete the selected object;
Delete All Arrows delete all objects of the arrow type;
Delete All Selected delete all selected objects;

Delete All delete all objects from the current chart;
Unselect All unselect all objects in the chart;
Unselect unselect the select object;
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Undo Delete cancel deletion of the last object.
Lines
Various lines can be applied to a price or indicator chart using the "Insert Objects Lines"
menu or the "Line Studies" toolbar. The following line types are available in the terminal:
Type
Description
Horizontal Line
Horizontal line can be used to mark various levels, particularly, those of

support/resistance. One point must be set for this object to be imposed. Read
more...
Vertical Line
Vertical line can be used to mark various borders in the time axis and to compare
signals of indicators to price changes. One point must be set for this object to be
imposed. Read more...
Trendline
Trendline helps to explore trends in price changes. Two points must be set through
which a trendline will be drawn. Read more...
Trendline by Angle
Trendline by angle helps to explore trends in price changes. Unlike for a simple
trendline, an angle must be set for this line to be drawn. Two points must be set
through which a trendline will be drawn. Read more...
Cycle Lines
This tool represents a row of vertical lines placed at equal intervals. Normally, a
unit interval corresponds with one cycle. At that, completed lines are considered to
describe future cycles. The tool is drawn on two points that define the unit
interval. Read more...
Arrowed Line
This object is a straight line with an arrow at its end. It is intended for drawing
explanatory schemes in charts. Two points must be set for this tool to be
drawn.Read more...
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Horizontal Line
To plot a horizontal line, one should select this object and click once with your left mousebutton on a necessary point in the chart.
Parameters
A horizontal line has only one parameter - value on the price scale:
21
The necessary price level can be specified in the "Value" field. Common parameters of objects
are described in the corresponding section.
Vertical Line
To plot a vertical line, one should select this object and click once with your left mousebutton on a necessary point in the chart. A separate vertical line can be displayed on each
window (chart and indicator subwindows) or one vertical line can be drawn for all the
windows, depending on the specified parameters.
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Parameters
There are the following parameters of a vertical line:

Date position of the vertical line along the time axis;
Ray if this option is enabled, one vertical line will be drawn for the chart window
and indicatorsubwindows. If the option is disabled, the vertical line will be displayed only in
the window it is created in.
Trendline
A trendline is a straight line that joins two important minimal or maximal price lines in a
chart. Within a main trend there can be any number of secondary or minor trends. The length
of each of them differs within wide ranges. It should be remembered that a trendline must
not intersect with other prices between the two selected points. A trendline is a
support/resistance pass-through where price changes within the range of the pass-through.
Drawing
To draw a trendline, one should select this object and then click with the left mouse button in
the chart. After that holding the mouse button one should draw a line in the necessary
direction. Additional parameters will be shown near the end point: distance from the initial
point along the time axis, distance from the initial point along the price axis, slope line from
the horizontal line drawn through the initial point.
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Manipulations
Three points are located on a trendline. Extreme points are points for changing size and
inclination. The central one is used for moving the object.
Parameters
There are the following parameters of a trendline:
Date/Value coordinates of the initial point (date/value of the price scale);

Date/Value coordinates of the end point (date/value of the price scale);
Ray Right infinite duration of a trendline to the right;
Ray Left infinite duration of a trendline to the left.
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Trendline by Angle
To draw a trendline by angle, one should select this object and then click with the left mouse
button in the chart to choose the initial point of the line. After that holding the mouse button
one should draw a line in the necessary direction. Additional parameters will be shown near
the end point: distance from the initial point along the time axis, distance from the initial
point along the price axis, slope line from the horizontal line drawn through the initial point.
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Parameters
There are the following parameters of a trendline by angle:

Date/Value coordinates of the end point (date/value of the price scale);
Angle in degrees slope angle of the trendline from a horizontal line drawn through the
initial point;
Ray Right infinite duration of a trendline to the right;
Ray Left infinite duration of a trendline to the left.
Cycle Lines
To draw cycle lines, one should select this object and then click with the left mouse button in
the chart to choose the initial point of the lines. After that holding the mouse button one
should move the mouse to the right for setting the period to draw lines. There is a trendline
between the first and second vertical lines; it helps to draw grounded cycles upon price
variations.
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Parameters
There are the following parameters of cycle lines:
Date/Value coordinates of the initial point (date/value of the price scale) on the first
line;
Date/Value coordinates of the second point (date/value of the price scale) on the
second line.
Arrowed Line
This object is a straight line with an arrow at its end. It is intended for drawing explanatory
schemes in charts.
Drawing
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To draw an arrowed line, one should select this object and then click with the left mouse
button in the chart. After that holding the mouse button one should draw a line in the
necessary direction. Additional parameters will be shown near the end point: distance from
the initial point along the time axis, distance from the initial point along the price axis, slope
line from the horizontal line drawn through the initial point.
Manipulations
Three points are located on an arrowed line. Extreme points are points for changing size and
inclination. The central one is used for moving the object.
Parameters
There are the following parameters of an arrowed line:

Date/Value coordinates of the end point (date/value of the price scale).
Common parameters of objects are described in the corresponding section.
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Channels
Various channels can be applied to a price or indicator chart using the "Insert Objects
Channels" menu or the "Line Studies" toolbar. The following channel types are available in the
terminal:
Type
Description
Equidistant Channel
Lines of the equidistant (trend) channel are always parallel. Two points
must be set for this tool to be drawn. Read more...
Standard Deviation Channel
Standard deviation is the way of volatility measuring based on statistical

methods. Standard deviation influences the width of this channel. Two
points must be set for this tool to be drawn. Read more...
Regression Channel
Regression channel is a statistical analysis tool used for forecasting of

future values on basis of available data. If the trend is ascending, one
can logically suppose that the next bar will be a bit higher than the
preceding one. The linear regression method allows to have a statistical
demonstration of such logical conclusions. Two points must be set for
this tool to be drawn. Read more...
Andrews' Pitchfork
This tool is drawn on three points and represents the parallel trendlines.
The first trendline starts at the selected leftmost point (it is an important
peak or trough) and is drawn precisely between two rightmost points.
This line is the pitchfork helve. Then, the second and the third
trendlines outgoing from the above-mentioned rightmost points
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(significant peak and trough) are drawn in parallel to the first trendline.
These lines are the pitchfork teeth. Andrews' Pitchfork is interpreted
as support/resistance lines are normally interpreted. Read more...
Equidistant Channel
Equidistant Channel represents two parallel trendlines connecting extreme maximum and
minimum close prices. Market price jumps, draws peaks and troughs forming the channel in
the trend direction. Early identification of the channel can give valuable information
including that about changes in the trend direction what allows to estimate possible profits
and losses.
Drawing
To draw the equidistant channel, one should select this object and then click with the left
mouse button in the chart. After that holding the mouse button one should draw the channel
in the necessary direction and set its width. Additional parameters will be shown near the end
point of the lower border of the channel: distance from the initial point along the time axis,
distance from the initial point along the price axis.
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Manipulations
On the main channel line there are three points that can be moved with the mouse. Moving of
the first point changes the channel width and the length of the upper and lower borders
(length of borders is changed proportionally but in different directions). Moving of the central
point of the main line will move the channel without changing its dimensions. Manipulations
with the third point allow changing the length and direction of the whole channel. Moving of
the point of the second channel line allows moving this border independently from the main
line.
Parameters
There are the following parameters of the equidistant channel:
Date/Value coordinates of the first point (anchor) on the main line (date/value of the
price scale);
Date/Value coordinates of the last point (moving point) on the main line (date/value
of the price scale);
Date/Value point coordinates of the second line (date/value of the price scale);
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Ray Right infinite duration of the channel to the right;

Ray Left infinite duration of the channel to the left;
Fill enable/disable color filling inside the channel.
Standard Deviation Channel

Standard Deviation Channel is built on base of Linear Regression Trend representing a
usual trendline built between two points on the price chart using the method of least squares.
As a result, this line proves to be the exact median line of the changing price. It can be
considered as an equilibrium price line, and any deflection up or down indicates the
superactivity of buyers or sellers respectively.
Standard Deviation Channel consists of two parallel lines, equidistant up and down from the
Linear Regression Trend. The distance between frame of the channel and regression line
equals to the value of standard close price deviation from the regression line. All price
changes take place within Standard Deviation Channel, where the lower frame works as
support line, and the upper one does as resistance line. Prices usually exceed the channel
frames for a short time. If they keep outside of the channel frames for a longer time than
usually, it forecasts the possibility of trend turn.
Drawing
To draw the channel, one should select this object and then click with the left mouse button
in the chart. After that holding the mouse button one should draw the channel in the
necessary direction and set its length. Additional parameters will be shown near the end point
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of the trendline of the channel: distance from the initial point along the time axis, distance
from the initial point along the price axis.
Manipulations
On the trend line of the channel linear regression there are three points that can be moved
with the mouse. The first and the last points are used to change the channel length in
different directions. The central point (moving point) is used to move a channel in the chart
without changing its dimensions.
Parameters
There are the following parameters of the standard deviation channel:
Date coordinate on the time scale of the first point of the trend of the channel linear
regression.
Date coordinate on the time scale of the last point of the trend of the channel linear
regression.
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Fill enable/disable color filling inside the channel;
Deviations number of standard deviation values for building the channel borders.
Regression Channel
Regression Channel is built on base of Linear Regression Trend representing a
usual trendline drawn between two points on a price chart using the method of least squares.
As a result, this line proves to be the exact median line of the changing price. It can be
considered as an equilibrium price line, and any deflection up or down indicates the
superactivity of buyers or sellers respectively.
Linear Regression Channel consists of two parallel lines, equidistant up and down from the
line of linear regression trend. The distance between frame of the channel and regression line
equals to the value of maximum close price deviation from the regression line.
Drawing
To draw the channel, one should select this object and then click with the left mouse button
in the chart. After that holding the mouse button one should draw the channel in the
necessary direction and set its length. Additional parameters will be shown near the end point
of the trendline of the channel: distance from the initial point along the time axis, distance
from the initial point along the price axis.
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Manipulations
On the trend line of the channel linear regression there are three points that can be moved by
a mouse. The first and the last points are used to change the channel length in corresponding
directions. The central point (moving point) is used to move a channel in the chart without
changing its dimensions.
Parameters
There are the following parameters of the regression channel:
Date coordinate on the time scale of the first point of the trend of the channel linear
regression.
Date coordinate on the time scale of the last point of the trend of the channel linear
regression.
Fill enable/disable color filling inside the channel.
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Andrews' Pitchfork
Andrews Pitchfork is an instrument consisting of three parallel trendlines. This instrument
was developed by Dr. Alan Andrews. Interpretation of Andrews Pitchfork is based on standard
rules of interpretation of support and resistance. The first trend line starts in a selected
extreme left point (it is an important peak or trough) and is drawn exactly between two
extreme right points. This line is the "handle" of pitchfork. Then, the second and the third
trend line issuing from two above-mentioned extreme right points (important peak and
trough) are drawn parallel to the first one. These lines are "tines" of the pitchfork. Signal lines
are drawn parallel to "tines" of the pitchfork. They are drawn at distances proportional to
Fibonacci numbers. The distance between the median line (continuation of a "handle") and
"teeth" of the pitchfork.
Drawing
To draw Andrews' Pitchfork, one should select this object and then click with the left mouse
button in the chart plotting the first point (beginning of the "handle"). After that one should
plot the second point of the "handle" in a chart and holding the mouse button move the cursor
thus setting "teeth" of the pitchfork and signal lines at the necessary distance. Additional
parameters will be shown near the cursor - three pairs of numbers. The first pair indicates the
"handle" beginning, the first value is always equal to zero (because it is the initial point of the
object); the second number indicates the distance between "teeth". The second and third
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pairs of numbers show distance along the time axis and price axis from the "teeth" to the
"handle" beginning point.
Manipulations
Moving of the "handle" beginning point will change the direction of "teeth" only. The second
point of the "handle" allows moving Andrews' Pitchfork in the chart without changing its
dimensions. Points of "teeth" beginning allow changing the position of teeth separately; when
one point is moved, the second stays in its place.
Parameters
For Andrews' Pitchfork level settings (of signal lines) can be changed. Besides there are the
following parameters of the pitchfork:
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Date/Value coordinates of the beginning point of Andrews' Pitchfork "handle"

(date/value of the price scale);
Date/Value coordinates of the point of the lower "tooth" (lower pivot point) of
Andrews' Pitchfork (date/value of the price scale);
Date/Value coordinates of the point of the upper "tooth" (upper pivot point) of
Andrews' Pitchfork (date/value of the price scale);
Ray Right infinite duration of the pitchfork to the right;
Ray Left infinite duration of the pitchfork to the left.
Gann Tools
Gann tools can be applied to a price or indicator chart using the "Insert Objects Gann"
menu or the "Line Studies" toolbar. The following types of Gann tools are available in the
terminal:
Type
Description
Gann Line
Gann Line represents a trendline drawn at an angle of 45 degrees. Two points must be set for
this tool to be drawn. Read more...
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Gann Fan
Gann Fan represents a set of trendlines drawn from one point at different angles. Gann
considered the trendline of 1x1 (45 degrees) as a very important one. If the price curve is
above this line, the market should be considered as bull market, if it is below, it is bear market.
Gann supposed the ray of 1x1 to be a powerful supporting line at an ascending trend, and
breaking of this line to be an important turn signal. One point must be set for Gann Fan to
be drawn. Read more...
Gann Grid
Lines of the Gann Grid are drawn at an angle of 45 degrees. Two points must be set for this
tool to be drawn. Read more...
Gann Line
Gann Line represents a line drawn at the angle of 45 degrees. This line is also called "one to
one" (1x1) what means one change of the price within one unit of time.
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According to Ganns concept, the line having the slope of forty-five degrees represents a longterm trendline (ascending or descending). While prices are above the ascending line, the
market holds bull directions. If prices hold below the descending line, the market is
characterized as a bear one. Intersection of Gann Line usually signals of the basic trend
break. When prices go down to this line during an ascending trend, time and price become
fully balanced. The further intersection of Gann Line is the evidence of breaking of this
balance and possible changing the trend.
Drawing
To draw the Gann line, one should select this object and then select an initial point in the
chart. After that holding the mouse button one should draw a line in the necessary direction.
Additional parameters will be shown near the cursor: distance from the initial point along the
time axis, distance from the initial point along the price axis. Besides, during line
construction additional vertical lines are shown for the accurate positioning of the initial and
end point of the line.
Manipulations
On the line there are three points that can be moved by a mouse. By moving the first and the
last points one can change the slope of a line, as well as its length (if "Ray Right" and "Ray
Left" parameters are disabled in the object parameters). The central point (moving point) is
used for moving the line in the chart without changing its length or slope.
Parameters
There are the following parameters of the Gann Line:
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Date coordinates of the last point along the time axis;
Gann Angle slope angle of the Gann line relative to a horizontal line drawn through
the initial point at the scale 1:1 (one price change to one time unit);
Pips Per Bar scale for plotting the Gann Line in a chart. Ratio of pips number to one
bar;
Ray Right infinite duration of the trendline to the right;
Ray Left infinite duration of the trendline to the left.
Gann Fan
Lines of Gann Fan are built at different angles from an important base or peak at the price
chart. The trendline of 1x1 was considered by Gann the most important. If the price curve is
located above this line, it is the indication of the bull market, if it is below this line it is that
of the bear market. Gann thought that the ray of 1x1 is a powerful support line when the
trend is ascending, and he considered the breaking this line as an important turn signal. Gann
emphasized the following nine basic angles, the angle of 1x1 being the most important of all:
1x8 82,5 degrees
1x4 75 degrees
1x3 71,25 degrees
1x2 63,75 degrees
1x1 45 degrees
2x1 26,25 degrees
3x1 18,75 degrees
4x1 15 degrees
8x1 7,5 degrees
The considered ratios of price and time increments to have corresponding angles of slope in
degrees, X and Y axes must have the same scales. It means that a unit interval on X axis (i.e.,
hour, day, week, month) must correspond with the unit interval on Y axis. The simplest
method of chart calibration consists in checking the angle of slope of the ray of 1x1: it must
make 45 degrees.
Gann noted that each of the above-listed rays can serve as support or resistance depending on
the price trend direction. For example, ray of 1x1 is usually the most important support line
when the trend is ascending. If prices fall below 1x1 line, it means the trend turns. According
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to Gann, prices should then sink down to the next trend line (in this case, it is the ray of 2x1).
In other words, if one of rays is broken, the price consolidation should be expected to occur
near the next ray.
Drawing
To draw Gann Fan, one should select this object and indicate an initial point in the chart.
After that holding the mouse button one should draw the tool at the necessary length. An
additional parameter will be shown near the end point distance along the time axis from
the initial point.
Manipulations
Gann Fan can be managed using two points located on the trendline 1x1; the points can be
moved using a mouse. These points are used for positioning Gann Fan in a chart. The line
slope angle can be changed in the "Pips Per Bar" parameter described below.
Parameters
There are the following parameters of the Gann Fan:
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Pips Per Bar scale for plotting the Gann Fan in a chart. Ratio of pips number to one
bar;
Downtrend if this field is checked, the Gann Fan will be inclined downwards. This
parameter is used for building the Gann Fan at downtrends.
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Gann Grid
Gann Grid represents trends built at the angle of 45 degrees (Gann Lines). According to
Ganns concepts, a line having a slope of forty-five degrees represents a long-term trendline
(ascending or descending). While prices are above the ascending line, the market holds bull
direction. If prices hold below descending line, the market is characterized as a bear one.
Intersection of the Gann Line usually signals of breaking the basic trend. When prices go down
to this line during an ascending trend, time and price become fully balanced. The further
intersection of Gann Lines is an evidence of breaking of this balance and possible change of
the trend.
Drawing
To draw Gann Grid, one should select this object and indicate an initial point in the chart.
After that holding the mouse button one should define the second point setting thus the size
of cells. An additional parameter will be shown near this point distance along the time axis
from the initial point.
Manipulations
On the main line of Gann Grid there are three points that can be moved by a mouse. The first
and last points are used for setting the grid cell size. The central point (moving point) is used
for moving Gann Grid in the chart without changing its dimensions. The slope of lines is
defined by the "Pips Per Bar" parameter described below.
Parameters
There are the following parameters of Gann Grid:
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Pips Per Bar scale for plotting the Gann Grid in a chart. Ratio of pips number to one
bar;
Downtrend if this field is checked, the Gann Grid will be directed downwards. This
parameter is used for building the Gann Grid at downtrends.
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Fibonacci Tools
Fibonacci tools can be applied to a price or indicator chart using the "Insert Objects
Fibonacci" menu or the "Line Studies" toolbar. The following types of Fibonacci tools are
available in the terminal:
Type
Description
Fibonacci Retracement
Leonardo Fibonacci is considered to have discovered a number sequence where

each successive number represents a sum of two preceding ones: 1, 1, 2, 3, 5, 8,
13, 21, 34, 55, 89, 144, etc. Each number is approximately 1.618 times more than
the preceding one, and each number makes approximately 0.618 of the
successive one. The tool can be drawn on two points that determine the trendline.
At that, horizontal lines that meet the trendline at Fibonacci levels (retracement)
as 0.0%, 23.6%, 38.2%, 50%, 61.8%, 100%, 161.8%, 261.8%, and 423.6% are
drawn automatically. Read more...
Fibonacci Time Zones
Fibonacci Time Zones represent a row of vertical lines placed at Fibonacci

intervals from each other: 1, 2, 3, 5, 8, 13, 21, 34, etc. It is considered that
significant price changes should be expected near these lines. The tool can be
drawn on two points that define the unit interval. Read more...
Fibonacci Fan
Fibonacci Fan is drawn on two points that define the trendline. Then an
invisible vertical line is drawn through the second point. Then three trendlines
are drawn from the first point, these trendlines meeting the invisible vertical line
at Fibonacci levels of 38.2%, 50%, and 61.8%. It is considered that significant
price changes should be expected near these lines. Read more...
Fibonacci Arcs
The tool named Fibonacci Arcs is drawn on two points that define the trendline.
Then three arcs having the centers in the second point are drawn, these arcs
meeting the trendline at Fibonacci levels of 38.2%, 50%, and 61.8%. It is
considered that significant price changes should be expected near these arcs.Read
more...
Fibonacci Channel
To draw this tool, a channel is used the width of which is taken as one. Then, at
the distances defined by the Fibonacci sequence, parallels are drawn starting with
the distance of 0.618 of the channel width, then 1.000, 1.618, 2.618, 4.236, etc.
Two points and the basic channel width must be set for this tool to be
drawn.Read more...
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Fibonacci Expansion
Fibonacci Expansion is drawn on three points that circumscribe two waves. Then
three lines meeting the third, "presumptive", wave at Fibonacci levels of 61.8%,
100%, and 161.8%, are drawn. It is considered that significant price changes
should be expected near these lines. Read more...
Fibonacci Retracement
Fibonacci Retracement is built as follows: first, a trendline is built between two extreme
points, for example, from the trough to the opposing peak. Then, nine horizontal lines
intersecting the trend line at Fibonacci levels of 0.0, 23.6, 38.2, 50, 61.8, 100, 161.8, 261.8,
and 423.6 percent are drawn. After a significant rise or decline, prices often return to their
previous levels correcting an essential part (and sometimes completely) of their initial
movement. Prices often face support/resistance at the level of Fibonacci Retracements or
near them in the course of such a reciprocal movement.
Drawing
To draw Fibonacci Retracement, one should select this object and indicate an initial point in
the chart. After that holding the mouse button one should draw a trendline setting the
necessary length and slope. Additional parameters will be shown near the end point of the
trendline: distance from the initial point along the time axis and distance from the initial
point along the price axis, as well as the slope angle relative to a horizontal line drawn
through the initial point at the scale 1:1.
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Manipulations
On the trendline there are three points that can be moved using a mouse. The first and the
last points allow changing the trendline length and direction. The central point (moving point)
is used for moving the object without changing its dimensions.
Levels
This tab is intended for managing levels of the tool. The Fibonacci Retracement has additional
feature of displaying price value of each level. To do it, specify the (%$) symbols in the
"Description" field.
Parameters
For Fibonacci Retracement construction settings can be changed. Besides, there are the
following parameters for this object:
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Date/Value coordinates of the initial point of the trendline (date/value of the price
scale);
Date/Value coordinates of the end point of the trendline (date/value of the price
scale);
Ray Right infinite duration of Fibonacci Retracement to the right;
Day Left infinite duration of Fibonacci Retracement to the left.
Fibonacci Time Zones

Fibonacci Time Zones is a sequence of vertical lines having Fibonacci intervals of 1, 2, 3, 5, 8,
13, 21, 34, etc. Significant price changes are considered to be expected near these lines.
Drawing
To draw this tool, one should select this object and using the mouse define two points on the
chart that will set the length of the unit interval. Additional parameters will be shown near
the end point: distance from the initial point along the time axis and distance from the initial
point along the price axis, as well as the slope angle relative to a horizontal line drawn
through the initial point at the scale 1:1. All other lines are constructed on the basis of this
unit interval in accordance with Fibonacci numbers.
49
Manipulations
On the unit interval line there are three points that can be moved by a mouse. The first and
the last points are used for changing the length and direction of lines. The central point
(moving point) is used for moving the object without changing its dimensions.
Parameters
For Fibonacci Time Zones construction setting can be changed. Besides, there are the
Date/Value coordinates of the initial point of the trendline (date/value of the price
scale);
scale).
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Fibonacci Fan
Fibonacci Fan as a line instrument is built as follows: a trendline for example from a trough
to the opposing peak is drawn between two extreme points. Then, an "invisible" vertical line
is automatically drawn through the second extreme point. After that, three trend lines
intersecting this invisible vertical line at Fibonacci levels of 38.2, 50, and 61.8 percent are
drawn from the first extreme point.
These lines are considered to represent support and resistance levels. For getting a more
precise forecast, it is recommended to use other Fibonacci tools along with the Fan.
Drawing
To draw Fibonacci Fan, one should select this object and indicate an initial point in the chart.
After that holding the mouse button one should draw a trendline setting the necessary length
and slope. Additional parameters will be shown near the end point of the trendline: distance
from the initial point along the time axis and distance from the initial point along the price
axis, as well as the slope angle relative to a horizontal line drawn through the initial point at
the scale 1:1.
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Manipulations
On the main trendline there are three points that can be moved by a mouse. The first and the
last points are used for changing the length and direction of lines. The central point (moving
point) is used for moving Fibonacci Fan without changing its dimensions and direction.
Parameters
For Fibonacci Fan trendline construction settings can be changed. Besides, there are the
Date/Value coordinates of the initial point of the trend line (date/value of the price
scale);
scale).
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Fibonacci Arcs
Fibonacci Arcs are built as follows: first, the trend line is drawn between two extreme points,
for example, from the trough to the opposing peak. Then three arcs are built having their
centers in the second extreme point and intersecting the trend line at Fibonacci levels of
38.2, 50, and 61.8 percent.
Fibonacci arcs are considered to be potential support and resistance levels. Fibonacci Arcs
and Fibonacci Fan are usually plotted together on the chart, and support and resistance levels
are determined by the points of intersection of these lines.
It should be noted that the points of intersection of Arcs and the price curve can change
depending on the chart scale since an arc is a part of a circumference, and its form is always
the same.
Drawing
To draw Fibonacci Arcs, one should select this object and indicate an initial point in the chart
and, holding the mouse button, one should draw a trendline till the second extreme point.
Additional parameters will be shown near the end point of the trendline: distance from the
initial point along the time axis and distance from the initial point along the price axis, as
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well as the slope angle relative to a horizontal line drawn through the initial point at the
scale 1:1.
Manipulations
On the trendline there are three points that can be moved by a mouse. The first and the last
points are used for changing the length and direction of lines. The central point (moving
point) is used for moving Fibonacci Arcs without changing their dimensions and direction.
Parameters
For Fibonacci Arcs construction settings can be changed. Besides, there are the following
parameters for this object:
Date/Value coordinates of the initial point of the trend line (date/value of the price
scale);
Date/Value coordinates of the end point of the trend line (date/value of the price
scale);
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Scale ratio of the minor and larger radiuses of arcs. The minor radius is measured
along the price scale, the larger one - along the time scale. This parameter sets the ratio of
pips number to one bar;
Ellipse if this field is checked, Fibonacci Arcs will be specularly closed by identical
arcs thus building the shape of an ellipse.
Fibonacci Channel
Fibonacci Channels are built using several parallel trendlines. To build this instrument, the
channel having the width taken as a unit measure is used. Then, parallel lines are drawn at
the values equal to the Fibonacci Numbers, beginning with 0.618-fold size of the channel,
then 1.000-fold, 1.618-fold, 2.618-fold, 4.236-fold, etc. As soon as the fifth wave finishes,
correction in the direction opposite to the trend can be expected.
It is necessary to remember for a correct Fibonacci Channel building: base line limits the
upper part of the channel when trend is ascending, and the lower part of it when trend is
descending.
Drawing
To draw Fibonacci Channel, one should select this object and indicate an initial point of the
main trendline in the chart. After that holding the mouse button one should draw a trendline
in the necessary direction. Additional parameters will be shown near the end point of the
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trendline: distance from the initial point along the time axis and distance from the initial
point along the price axis. Other lines will be automatically drawn parallel to the main one.
Manipulations
On the main trendline there are three points that can be moved by a mouse. The first and the
last points are used for changing the length and direction of lines. The central point (moving
point) is used for moving Fibonacci Channel without changing its dimensions and direction. On
the second border of the channel there is a point used for changing the width of the channel.
The second border of the channel is moved independently from the first one.
Parameters
For Fibonacci Channel trendline construction settings can be changed. Besides, there are the
Date/Value coordinates of the first point on the main line of Fibonacci Channel
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Date/Value coordinates of the last point on the main line of Fibonacci Channel
Date/Value coordinates of the point on the second line of Fibonacci Channel
Ray Right infinite duration of Fibonacci Channel to the right;
Ray Left infinite duration of Fibonacci Channel to the left.
Fibonacci Expansion
Fibonacci Expansion is largely similar to Fibonacci Retracement and intended for determining
of the end of the third wave. Unlike Fibonacci Retracement, this instrument is built not on
the only one trendline, but on two waves.
First, the line of the first wave is drawn, its height will be considered as a unit interval later
on. The end of the second wave serves as a reference point for building an invisible vertical
line. The corresponding lines are drawn from the reference point on the interval equal to
61.8, 100%, and 161.8 per cent of the unit interval. The third wave is considered to finish
near these levels.
Drawing
To draw Fibonacci extension, one should select this object and indicate the first point of the
first wave in the chart. After that one should define the second point of the first wave. To
plot the second wave one should click on the second point of the first wave and holding the
mouse button draw it. When selecting each point additional parameters will be shown near it:
57
distance from the initial point along the time axis and distance from the initial point along
the price axis.
Manipulations
On the first wave there are three points that can be moved by a mouse. Using the first point
and the last point (which is the first point of the second wave) length and slope are defined.
The central point (moving point) is used for moving the whole object without changing its size
and shape.
Levels
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This tab is intended for managing levels of the tool. The Fibonacci Expansion has additional
feature of displaying price value of each level. To do it, specify the (%$) symbols in the
"Description" field.
Parameters
There are the following parameters for this object:
Date/Value coordinates of the first point of the first wave (date/value of the price
scale);
Date/Value coordinates of the last point of the first wave (date/value of the price
scale);
Date/Value coordinates of the last point of the second wave (date/value of the price
scale);
Ray Right infinite duration of levels to the right;
Ray Left infinite duration of levels to the left.
Elliott Tools
Elliott tools can be applied to a price or indicator chart using the "Insert Objects Elliott"
menu or the "Line Studies" toolbar.
Two types of Elliott tools for displaying waves are available in the terminal:
Type
Description
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Impulse Wave
According to Elliott's theory, impulse waves create a directed trend (bull or bear)
and cause the market to move very actively. Five points are necessary to draw this
tool.
Corrective Wave
Corrective waves (rollbacks) are characterized by moving against the trend.
In the "Elliott Wave Theory" section the theoretical aspect of working with these objects is
represented. The practical one is given in the "Construction of Waves" section.
Elliott Wave Theory

The Elliot Wave Theory represents a development of the well-known Dow theory. It applies to
any freely traded assets, liabilities, or goods (shares, obligations, oil, gold, etc.). The Wave
Theory was proposed by accountant and business expert Ralph Nelson Elliott in his study titled
"The Wave Principle" published in 1938.
After he had retired and a serious illness had been discovered in his organism, Elliott started
to observe stock markets and their charts in the hope of understanding the market behavior.
After he had performed a large work, he concluded that the market, being a product of
predominant psychology of the masses, followed some laws.
The Elliott Wave Theory is based on a certain cyclic laws in human behavior psychology.
According to Elliott, the market price behavior can be clearly estimated and shown in the
chart as waves (wave is here an explicit price move). The Elliott Wave Theory says that the
market can be in two large phases: Bull Market and Bear Market.
Elliott proposes, as well, that all price moves on the market are divided into:
five waves in the direction of the main trend (waves 1 to 5 in Fig. 1);
three corrective waves (waves A, B, C in Fig. 1).
The waves are divided into:
impulses that create a directed trend (bull or bear) and cause the market to move very
actively (waves 1, 3, 5, A, C in Fig. 1);
corrections (rollbacks) that are characterized by moving against the trend (waves 2, 4, B
in Fig. 1).
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Figure 1.
In his Wave Theory, Elliott was based on the waves subdivision principle. This means that
every wave is a part of a longer wave and is subdivided into shorter waves itself (Fig. 2).
Every wave is subdivided into 3 or 5 waves. This subdivision depends on the direction of the
longer wave.
The main principle in the Elliott's theory is that every impulse wave consists of five shorter
waves and every corrective wave (against the trend) is composed of three waves, which can
be well seen in Fig. 2. For example, Wave 1 in Fig. 2 is composed of 5 shorter waves since it is
an impulse wave that creates the trend.
The longest cycle, according to Elliott, is called Grand Supercycle that is compose of 8
Supercycle waves. The latter ones are each composed of 8 Cycles, etc. For example, Fig. 2
shows 3 basic cycles. It can easily be seen that impulse waves and the subsequent corrective
waves are proportional. The stronger impulse is, the stronger correction is, and vice versa.
The Elliott Wave Theory is criticized for there is not always a clear definition of when a wave
starts or ends. Corrections are especially difficult in this regard.
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Elliott Wave Theory and Fibonacci Numbers

Fibonacci Numbers provide the mathematical foundation for the Elliott Wave Theory.
Fibonacci numbers play an important role in the construction of the complete market cycle
described with the Elliott's waves. Each of the cycles Elliott defined are comprised of a total
wave count that falls within the Fibonacci number sequence.
Under closer examination of Fig. 2, one can notice that the complete market cycle is
composed of two large waves, eight middle waves, and 34 small waves. Similarly, at a bear
market, we can see that a bear Grand Supercycle is composed of one large wave, five middle
waves, and 21 small waves. If we continue this subdivision, we will be able to observe the
consequent 89 even smaller waves, etc.
Respectively, a bull Grand Supercycle is composed of one large wave, three middle waves,
and 13 small waves. At the next sublevel, there are 55 very small waves, etc.
Figure 2.
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This principle is normally used in the Elliott Wave Theory as follows: movement in a certain
direction should continue until it reaches some point in concordance with the summational
Fibonacci number sequence.
For example, if the time, during which the trend does not change, exceeds 3 days, this
direction should not reverse until the 5th day begins. Similarly, the trend should continue up
to 8 days if it has not changed the direction within 5 days. 9-day trend should not be
completed until the 13th day begins, etc. This basic pattern of how the trend movements can
be calculated equally applies for both hourly, daily, weekly, or monthly data. However, this is
just an "ideal model", and nobody can expect that prices' behavior will be so definite and
predictable. Elliott noted that deviations could happen both in time and in amplitude and
individual waves would hardly develop exactly in these regular forms.
Characteristics of Waves
Calculations within the Elliott Wave Theory resemble a road-map. Every wave has a set of
characteristics. These characteristics are based on market behaviour arrays.
In the Elliott Wave Theory, a special attention is paid to individual description of each wave.
Besides, there are certain laws used for proportional formations of Elliott waves (table
below). These laws enable proper definition of where the wave starts and how long it is. The
wave lengths are measured from high to low of the corresponding wave.
Wave Classical Relations between Waves
0.382, 0.5 or 0.618 of Wave 1 length
1.618 or 2.618 of Wave 1 length
0.382 or 0.5 of Wave 1 length
0.382, 0.5 or 0,618 of Wave 1 length
0.382, 0.5 or 0,618 of Wave 1 length
0.382 or 0.5 of Wave A length
1.618, 0.618 or 0.5 of Wave A length
The above classical relations between waves are confirmed by actual ones with a 10%-error.
Such error can be explained through short-term influences of some technical or fundamental
factors. In whole, the data are rather relative. Important is that all relations between all
waves can take values of 0.382, 0.50, 0.618, 1.618. Using this, we can calculate relations
between both wave heights and wave lengths. Let us consider characteristics of each wave:
Wave
1
Happens when the "market psychology" is practically bearish. News are still negative. As a
rule, it is very strong if it represents a leap (change from bear trend to the bull trend,
penetration into the might resistance level, etc.). In a state of tranquility, it usually
demonstrates insignificant price moves in the background of general wavering.
Wave
2
Happens when the market rapidly rolls back from the recent, hard-won profitable positions. It
can roll back to almost 100% of Wave 1, but not below its starting level. It usually makes 60%
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of Wave 1 and develops in the background of prevailing amount of investors preferring to fix
their profits.
Wave
3
Is what the Elliott's followers live for. Rapid increase of investors' optimism is observed. It is
the mightiest and the longest wave of rise (it can never be the shortest) where prices are
accelerated and the volumes are increased. A typical Wave 3 exceeds Wave 1 by, at least,
1.618 times, or even more.
Wave
4
Often difficult to identify. It usually rolls back by no more than 38% of Wave 3. Its depth and
length are normally not very significant. Optimistic moods are still prevailing in the market.
Wave 4 may not overlap Wave 2 until the five-wave cycle is a part of the end triangle.
Wave
5
Is often identified using momentum divergences. The prices increases at middle-sized trade
volumes. The wave is formed in the background of mass agiotage. At the end of the wave, the
trade volumes often rise sharply.
Wave
A
Many traders still consider the rise to make a sharp come-back. But there appear some
traders sure of the contrary. Characteristics of this wave are often very much the same as
those of Wave 1.
Wave
B
Often resembles Wave 4 very much and is very difficult to identify. Shows insignificant
movements upwards on the rests of optimism.
Wave
C
A strong decreasing wave in the background of general persuasion that a new, decreasing
trend has started. In the meantime, some investors start buying cautiously. This wave is
characterized by high momentum (five waves) and lengthiness up to 1.618-fold Wave 3.
Unfortunately, Elliott's waves are well observed in the "old" market, but they are rather
dimmed for the future. This is why practical use of the Elliott Wave Theory is often difficult
and requires special knowledge.
Construction of Waves
Two objects are available in the terminal - Impulse and Corrective waves. To apply waves on a
chart, five points should be defined for an impulse wave and three - for a corrective wave.
Settings are identical for both objects, but they should be specified separately:
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Anchor Point select one of points for plotting an impulse or corrective waves;
Date/Value coordinates of the selected anchor point (date/value of the price scale);
Degree select the cycle level influencing also the displaying of point markings;
Lines if this field is selected, all points of an impulse or corrective wave will be
sequentially joined.
Shapes
Different shapes can be applied to a price or indicator chart using the "Insert Objects
Shapes" menu or the "Line Studies" toolbar. Shapes serve to highlight important areas in a
chart. The following shapes are available in the terminal:
Type
Description
Rectangle
To draw the figure two points must be defined. Read more...
Triangle
To draw the figure three points must be defined. Read more...
Ellipse
To draw the figure three points must be defined. Read more...
Rectangle
To draw a rectangle, one should select the object and define an initial point in a chart. After
that, holding a mouse one should drag a rectangle till the necessary size. Additional
parameters will be shown near the end point: distance from the initial point along the time
axis and distance from the initial point along the price axis.
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Manipulations
This object has three control points that can be moved by a mouse. Points located on faces
are used for changing the size of the rectangle. The point located in the center is used for
moving the object without changing its shape.
Parameters
There are the following parameters of a rectangle:
Date/Value coordinates of the first point of the rectangle (date/value of the price
scale);
Date/Value coordinates of the second point of the rectangle (date/value of the price
scale);
Fill enable/disable color filling inside the shape.
To fill the object with the color of its lines, you should enable the "Draw object as background" option at
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the "Common"tab.
Triangle
To draw a rectangle, one should select the object and define an initial point in a chart. After
that one should define the second point and holding a mouse drag a triangle till the necessary
size and shape. Additional parameters will be shown near the cursor in the form of three pairs
of numbers, one of which will remain unchanged. The two other pairs will show the distance
from two other points along the time axis and along the price axis.
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Manipulations
This object has four control points that can be moved by a mouse. Points located on faces are
used for changing the size and shape of the triangle. The point located in the center is used
for moving the object without changing its shape.
Parameters
There are the following parameters of a triangle:
Date/Value coordinates of the first point of the triangle (date/value of the price
scale);
Date/Value coordinates of the second point of the triangle (date/value of the price
scale);
Date/Value coordinates of the third point of the triangle (date/value of the price
scale);
Common parameters of objects are described in the corresponding section.
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To fill the object with the color of its lines, you should enable the "Draw object as background" option at
the "Common"tab.
Ellipse
To draw an ellipse, one should select the object and define an initial point in a chart. After
that one should define the second point and holding the mouse drag the ellipse till the
necessary size and shape.
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Manipulations
This object has four control points that can be moved with the mouse. Points located on faces
are used for changing the size and shape of the ellipse. The point located in the center is
used for moving the object without changing its shape.
Parameters
There are the following parameters of an ellipse:
Date/Value coordinates of the first point of the ellipse (date/value of the price scale);
Date/Value coordinates of the second point of the ellipse (date/value of the price
scale);
Date/Value coordinates of the third point of the ellipse (date/value of the price
scale);
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To fill the object with the color of its lines, you should enable option the "Draw object as background" at
the "Common"tab.
Arrows
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Various arrows can be applied to a price or indicator chart using the "Insert Objects
Arrows" menu or the
button on the"Line Studies" toolbar. The following objects are
described in this section:
Type
Description
Thumbs Up
The "Thumbs Up" sign anchored to a certain point in a chart.
Thumbs Down
The "Thumbs Down" sign anchored to a certain point in a chart.
Arrow Up
The "Arrow Up" sign anchored to a certain point in a chart.
Arrow Down
The "Arrow Down" sign anchored to a certain point in a chart.
Stop Sign
The "Stop Sign" anchored to a certain point in a chart.
Check Sign
The "Check Sign" anchored to a certain point in a chart.
Left Price Label
The "Left Price Label" shows the price value left to the point selected in the chart.
Right Price Label
The "Right Price Label" shows the price value right to the point selected in the chart.
Buy Sign
The "Buy sign" is intended for marking Buy deals, it is anchored to a certain point in a
chart.
Sell Sign
The "Sell sign" is intended for marking Sell deals, it is anchored to a certain point in a
chart.
Arrow
Placing of any available sign according to a user's choice.
To draw these objects, one should select one of them and click on the necessary place of a
chart.
Parameters
All objects of this group have identical parameters, except for price labels that do not have
the anchor angle.
Date/Value coordinates of the control point of the object (date/value of the price
scale);
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Arrow Type one of object types specified in the table above. When selecting "Other",
an additional "Symbol" field appears to the right of this field;
Anchor one of object sides (top or bottom) on which the point of anchoring the object
to a chart or window is located. this parameter is not used for price labels.
Symbol this field appears only when "Other" is selected as the arrow type. On
pressing
a window with available symbols will appear. To select one a double-click on a
pictogram is used.
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Graphical Objects
Various graphical objects can be applied to a price or indicator chart using the "Insert
Objects Graphical" menu or the"Line Studies" toolbar. The following graphical objects are
available in the terminal:
Type
Description
Text
Text intended for adding of comments to the chart. Read more...
Text label
Text intended for adding of comments and anchored to the chart window
coordinates. Text label does not move when the chart is scrolled. Read more...
Button
Button intended for processing events from custom indicators, Expert Advisors and
scripts. Button is bound to the window and does not move when the chart is
scrolled. Read more...
Chart
A chart window inside the current chart with the possibility to set up the displayed
symbol and timeframe. Read more...
Bitmap
Placing of any "Bitmap" image in the chart window. This object is anchored to a
chart and moves together with the chart. Read more...
Bitmap Label
Placing of any "Bitmap" image in the chart window. This object is bound to a chart
window and does not move when the chart is scrolled. Read more...
Edit
Placing of an editable field in a chart window. This object is bound to a chart

window and does not move when the chart is scrolled. Read more...
Event
Placing the "Event" object on the horizontal chart scale. Read more...
Rectangle Label
Placing a "Rectangle Label" used for creating custom graphical interfaces on a
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chart. Read more...
Text
This object is intended for adding text comments to a chart. The object is bound to a chart
and moves together with it. To place the object in a chart, one should select it and define the
necessary point in a chart.
Manipulations
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The object is moved using the anchor point located on one of object sides or corners. The
text content is changed via the object settings in the "Description" field of the "Common" tab.
Parameters
There are the following parameters of the object:
Date/Value coordinates of the anchor point of the object (date/value of the price
scale);
Angle in degrees angle of the object slope from the horizontal line drawn through its
anchor point;
Font font type and size for the object text;
Anchor one of object sides or corners, where the anchor point is located.
Text Label
This object is intended for adding text labels to a chart. The object is anchored to a chart
window and does not move when the chart is scrolled. To place the object in a chart, one
should select it and define the necessary point in a chart.
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Manipulations
Parameters
X-distance distance in pixels from the anchor corner of the chart window till the
control point of the object along the time axis;
Y-distance distance in pixels from the anchor corner of the chart window till the
control point of the object along the price axis;
Width width of the object in pixels.This is an informational field, it cannot be
modified;
Height height of the object in pixels. This is an informational field, it cannot be
modified;
Anchor one of object sides or corners, where the anchor point is located;
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Angle in degrees angle of the object slope from the horizontal line drawn through its
anchor point;
Corner one of the corners of the chart window, from which distances along X and Y
axes will be set;
Font font type and size for the object text.
Button
This object is used for placing of functional buttons in a chart; processing of buttons is
performed via programs written inMQL5. The object is anchored to a chart window and does
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not move when the chart is scrolled. To place the object in a chart, one should select it and
define the necessary point in a chart.
Manipulations
Parameters
Width width of the button in pixels;
Height height of the button in pixels;
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axes will be set;
State selecting the button state: on or off. This parameter allows implementing the
connection with an MQL5 program. The program can read the change of the button state and
a certain program code will be implemented;
Background background color of the button;
In order to have the possibility to change the button state in a chart, it is necessary to enable the option "Disable
selection" in object properties.
Chart
This object is used for adding a chart of any security into the chart window, which allows
tracing the price dynamics of several symbols at the same time. The object is anchored to a
chart window and does not move when the chart is scrolled.
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When applied, this object inherits the current properties of a chart, to which it is applied.
Manipulations
The object is moved using the anchor point located on one of object sides or corners.
Parameters
There are the following parameters of the "Chart" object:
Width width of the chart window;
Height height of the chart window;
axes will be set;
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Scale chart scale adjusted using lever;

Dates scale display or not to display the time scale in the chart;
Prices scale display or not to display the price scale in the chart;
Symbol selecting a symbol for the chart;
Period selecting the chart period.
Bitmap
The object is used for attaching various images to a chart in the "bitmap" (*.bmp) format. The
object is bound to a chart and moves together with it.
Manipulations
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The object is moved using the anchor point located in its upper left corner.
Parameters
There are the following parameters of the "Bitmap" object:
Date/Value coordinates of the anchor point of the upper left corner of the object
Bitmap File the image file is indicated in this field. The bitmap files should be located
in the/MQL5/Images folder of the client terminal. If the object is created by an MQL5
program, the image file cannot be changed;
Width width of the object in pixels. This is an informational field, it cannot be
modified;
modified.
Bitmap Label
This object, as well as "Bitmap" is used for adding various images to a chart in the "bitmap"
(*.bmp) format. However the bitmap label is anchored to a chart window and does not move
when the chart is scrolled. Bitmap label can also be used as abutton processed
by MQL5 programs.
Manipulations
The object is moved using the anchor point located on its upper left corner.
Parameters
There are the following parameters of the "Bitmap Label" object:
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Anchor one of object sides or corners, where the anchor point is located;
axes will be set;
Bitmap File (On) selecting a file to be displayed when the label is on. The bitmap files
should be located in the/MQL5/Images folder of the client terminal. If the object is created
by an MQL5 program, the image file cannot be changed;
Bitmap File (Off) selecting a file to be displayed when the label is off. The bitmap
files should be located in the/MQL5/Images folder of the client terminal. If the object is
created by an MQL5 program, the image file cannot be changed;
Width width of the object in pixels.This is an informational field, it cannot be
modified;
modified;
State selecting the label state: on or off. This parameter allows implementing the
interaction with an MQL5 program. The program can read the change of the button state and
a certain program code will be implemented.
In order to have the possibility to change the label state in a chart, it is necessary to enable the option "Disable
selection"in object properties.
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Edit
This object is used for adding an editable text field in a chart. Values of the field can be
changed directly in the chart. Entered valued can be read by a program written
in MQL5 language. The object is anchored to a chart window and does not move when the
chart is scrolled.
Manipulations
The object is moved using the anchor point located on its upper left corner.
Parameters
There are the following parameters of the "Edit" object:
Width width of the editable field in pixels;
Height height of the editable field in pixels;
axes will be set;
Read Only enable/disable the "read only" mode. If this mode is enabled, then entering
and editing of a text in this field is prohibited;
Background background color for the editable field;
In order to have the possibility to enter the value to the field in a chart, it is necessary to enable the
option "Disable selection" in object properties.
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Event
This object is designed for displaying various events on a chart, like the events of
the economic calendar. An object is anchored to the time scale and is moved together with
the chart scroll. The object is shown on the time scale and is does not move vertically.
Manipulations
An object can be moved using an anchor point located on the time scale.
Parameters
The object has only common parameters.
Rectangle Label
This object is intended for creation of custom graphic interfaces. It can have different states
that can be processed by an MQL5 program. For example, a program can execute an operation
as a reaction to user interaction with this object.
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Manipulation
An object can be moved using an anchor point located in its upper left corner.
Parameters
The object has the following parameters:
Width width of the object in pixels;
Height height of the object in pixels;
axes will be set;
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Background the object fill color;

Border select the type of the object Border: Flat, Raised, Sunken.
Technical Indicators
Technical indicator is a mathematical manipulation of a security price and/or volumes aimed
at forecasting of future price changes. Decisions about how and when to open or close
positions can be made on basis of signals from technical indicators. According to their
functionalities, two types of indicators can be defined: trend indicators and oscillators. Trend
indicators help to assess the price direction and detect the turn moments synchronously or
with a delay. Oscillators allow to find the turning moments ahead or synchronously.
In the client terminal all indicators are divided into four groups:
Trend Indicators
Oscillators
Volume Indicators
Bill Williams' Indicators
Indicators are imposed into the chart from the "Navigator" window by means of "Drag'n'Drop"
technique, by execution of the "Indicators" command of the "Insert" menu or by pressing
the
button of the "Standard" toolbar. A technical indicator can be drawn in a separate
indicator window that has a specific vertical scale (for example, MACD) or it can be imposed
directly into the price chart (for example, Moving Average). Each indicator possesses a
predefined set of settings; their window is opened at an attempt to apply an indicator to a
chart. The setup window contains several tabs, their number depends on the indicator type:
Parameters
Indicators can be drawn not only for price data and derivatives thereof (Median Price, Typical
Price, Weighted Close), but also for other indicators. For example, Moving
Average for Awesome Oscillator can be drawn, and a signal line can be obtained additionally
to AO in this way. To do so, one should draw AO indicator first, and then using Drag'n'Drop
technique impose MA into AO and select "Previous Indicator's Data" option in its settings in the
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"Apply to" option (apply an indicator to the data of the previous indicator). If the "First
Indicator Data" option is selected, MA will be drawn on basis of data of the very first imposed
indicator that can be other than AO. There are nine variants of indicator drawing:
Close by Close prices;

Open by Open prices;
High by High prices;
Low by Low prices;
Median Price (HL/2) by median prices: (High + Low)/2;
Typical Price (HLC/3) by typical prices: (High + Low + Close)/3;
Weighted Close (HLCC/4) by weighted close prices: (High + Low + 2*Close)/4;
First Indicator's Data by values of the first attached indicator. The variant of using the
values of the first indicator is only possible when working with indicators in a separate subwindow, because the first indicator in the main chart window is the price itself;
Previous Indicator's Data by values of the previously attached indicator.
Besides analytical parameters, one can set colors for various elements, thickness of lines, and
sizes of signs used at the "Parameters" tab.
Colors
For indicators Ichimoku Kinko Hyo, Alligator and custom indicators there is a possibility of a
separate setup of element drawing styles. Here one can specify color, width and type of lines.
Levels
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For some indicators there is a possibility to set the drawing of additional levels. One should
press the "Add" button in the "Levels" tab and add level value (in points) and level descriptions
(optional) in the table. Below the table there is a possibility to set the drawing style for the
levels: color, width and type of lines. The "Edit" button or the double click on a corresponding
field is used for editing levels.
For indicators applied to a price chart levels are drawn by way of summing the indicator values and the specified
level. for indicators drawn in a separate sub-window levels are drawn as horizontal lines through the indicated value
on the vertical scale.
Scale
There are additional scale settings for some indicators. Windows of their properties have the
"Scale" tab with the following settings:
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Inherit Scale enable/disable inheriting of the scale from the first indicator in the
window. If this option is enabled, the indicator will have the same scale as the one applied
prior to this one;
Scale by Line enable/disable fixation of a certain indicator value in its sub-window
using a dragged line. If this option is enabled, "scale percent" and "scale value" fields become
active; the value of the indicator to be fixed can be specified there. After the value is set and
"OK" is pressed, a line will occur, using which one can set a fixed level of indicator values on
the vertical scale;
Fixed Minimum enable/disable fixation of a minimum value of the vertical scale of an
indicator subwindow. The field for indicating the corresponding value will become active as
soon as this option is enabled;
Fixed Maximum enable/disable fixation of a maximum value of the vertical scale of
an indicator subwindow. The field for indicating the corresponding value will become active
as soon as this option is enabled.
Visualization
Visualization mode of an object for different timeframes (periods) can be changed in the
"Visualization" tab. At that, indicator will be shown on at timeframes that have been selected.
This function can be useful if the tool has different settings for different timeframes. Using
the "Show in the Data Window" option in the same tab, one can control over visualization of
information about indicators in the "Data Window".
After an indicator is attached, its settings can be changed. In order to do this, one should
select the necessary indicator in the"Indicators List" window and press "Edit" or execute the "
Properties..." command of the indicator context menu.
Context Menu
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The context menu of the indicator is called by pressing of the right mouse-button on the line,
symbol or histogram of a necessary indicator. It allows executing the below programs:
Indicator Properties open the window of indicator properties;
Delete Indicator delete a selected indicator;
Delete Indicators Window delete an indicator sub-window. This command is

available only when calling the context menu of indicators opened in a separate sub-window;
Indicators List open the "Indicators List" window.
Moving a mouse cursor to a line, symbol or a histogram border of an indicator, you can precisely define the value of
this indicator in this point.
Trend Indicators
Trend indicators are used for detecting trends in financial markets. Indicators of these group
are inefficient in periods of flat. Trend indicators point to the price movement direction.
The following trend indicators are available in the client terminal:
Adaptive Moving Average

Average Directional Movement Index
Average Directional Movement Index Wilder
Bollinger Bands
Double Exponential Moving Average
Envelopes
Fractal Adaptive Moving Average
Ichimoku Kinko Hyo
Moving Average
Parabolic SAR
Standard Deviation
Triple Exponential Moving Average
Variable Index Dynamic Average
Adaptive Moving Average

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Adaptive Moving Average (AMA) Technical Indicator is used for constructing a moving average
with low sensitivity to price series noises and is characterized by the minimal lag for trend
detection. This indicator was developed and described by Perry Kaufman in his book "Smarter
Trading".
One of disadvantages of different smoothing algorithms for price series is that accidental
price leaps can result in the appearance of false trend signals. On the other hand, smoothing
leads to the unavoidable lag of a signal about trend stop or change. This indicator was
developed for eliminating these two disadvantages.
You can test the trade signals of this indicator by creating an Expert Advisor in MQL5
Wizard.
Calculation
To define the current market state Kaufman introduced the notion of Efficiency Ratio (ER),
which is calculated by the below formula:
ER(i) = Signal(i)/Noise(i)
Where:
ER(i) current value of the Efficiency Ratio;
Signal(i) = ABS(Price(i) - Price(i - N)) current signal value, absolute value of difference
between the current price and price N period ago;
Noise(i) = Sum(ABS(Price(i) - Price(i-1)),N) current noise value, sum of absolute values of
the difference between the price of the current period and price of the previous period for N
periods.
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At a strong trend the Efficiency Ratio (ER) will tend to 1; if there is no directed movement, it
will be a little more than 0. The obtained value of ER is used in the exponential smoothing
formula:
EMA(i) = Price(i) * SC + EMA(i-1) * (1 - SC)
Where:
SC = 2/(n+1) EMA smoothing constant, n period of the exponential moving;
EMA(i-1) previous value of EMA.
The smoothing ratio for the fast market must be as for EMA with period 2 (fast SC = 2/(2+1) =
0.6667), and for the period of no trend EMA period must be equal to 30 (slow SC = 2/(30+1) =
0.06452). Thus the new changing smoothing constant is introduced (scaled smoothing
constant) SSC:
SSC(i) = (ER(i) * ( fast SC - slow SC) + slow SC
or
SSC(i) = ER(i) * 0.60215 + 0.06425
For a more efficient influence of the obtained smoothing constant on the averaging period
Kaufman recommends squaring it.
Final calculation formula:
AMA(i) = Price(i) * (SSC(i)^2) + AMA(i-1)*(1-SSC(i)^2)
or (after rearrangement):
AMA(i) = AMA(i-1) + (SSC(i)^2) * (Price(i) - AMA(i-1))
Where:
AMA(i) current value of AMA;
AMA(i1) previous value of AMA;
SSC(i) current value of the scaled smoothing constant.
Average Directional Movement Index

Average Directional Movement Index Technical Indicator (ADX) helps to determine if there is a
price trend. It was developed and described in detail by Welles Wilder in his book "New
concepts in technical trading systems".
The simplest trading method based on the system of directional movement implies
comparison of two direction indicators: the 14-period +DI one and the 14-period -DI. To do
94
this, one either puts the charts of indicators one on top of the other, or +DI is subtracted from
-DI. W. Wilder recommends buying when +DI is higher than -DI, and selling when +DI sinks
lower than -DI.
To these simple commercial rules Wells Wilder added "a rule of points of extremum". It is used
to eliminate false signals and decrease the number of deals. According to the principle of
points of extremum, the "point of extremum" is the point when +DI and -DI cross each other. If
+DI raises higher than -DI, this point will be the maximum price of the day when they cross. If
+DI is lower than -DI, this point will be the minimum price of the day they cross.
The point of extremum is used then as the market entry level. Thus, after the signal to buy
(+DI is higher than -DI) one must wait till the price has exceeded the point of extremum, and
only then buy. However, if the price fails to exceed the level of the point of extremum, one
should retain the short position.
Calculation
ADX = SUM ((+DI - (-DI)) / (+DI + (-DI)), N) / N
Where:
N the number of periods used in the calculation;
SUM (..., N) sum for N periods;
+DI value of the indicator of the positive price movement (positive directional index);
-DI value of the indicator of the negative price movement (negative directional index).
Average Directional Movement Index Wilder

95
Average Directional Movement Index Wilder (ADX Wilder) helps to determine if there is a price
trend. This technical indicator is constructed as a strict correspondence with the algorithm
described by Welles Wilder in his book "New concepts in technical trading systems".
Trading rules of this indicator are described in the section "Average Directional Movement
Index".
Calculation
First positive (dm_plus) and negative (dm_minus) changes at each bar are calculated, as well
as the true range tr:
If High(i) - High(i-1) > 0 dm_plus(i) = High[(i) - High(i-1), otherwise dm_plus(i) = 0.
If Low(i-1) - Low(i) > 0 dm_minus(i) = Low(i-1) - Low(i), otherwise dm_minus(i) = 0.
tr(i) = Max(ABS(High(i) - High(i-1)), ABS(High(i) - Close(i-1)), ABS(Low(i) - Close(i-1)))
Where:
High(i) maximal price of the current bar;
Low(i) minimal price of the current bar;
High(i-1) maximal price of the previous bar;
Low(i-1) minimal price of the previous bar;
Close(i-1) close price of the previous bar;
Max (a, b , c) maximal value out of three numbers: a, b and c;
ABS(X) value of the number X absolute in its module.
After that smoothed values are calculated: Plus_D(i), Minus_D(i) and ATR():
ATR(i) = SMMA(tr, Period_ADX,i)
Plus_D(i) = SMMA(dm_plus, Period_ADX,i)/ATR(i)*100
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Minus_D(i) = SMMA(dm_minus, Period_ADX,i)/ATR(i)*100

Where:
SMMA(X, N, i) Smoothed Moving Average by values of X series on the current bar;
Period_ADX number of periods used for calculation.
Now Directional Movement Index - DX(i) - is calculated:
DX(i) = ABS(Plus_D(i) - Minus_D(i))/(Plus_D(i) + Minus_D(i)) * 100
After preliminary calculations we obtain the value of the ADX(i) indicator on the current bar
by smoothing DX index values:
ADX(i) = SMMA(DX, Period_ADX, i)
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Bollinger Bands
Bollinger Bands Technical Indicator (BB) is similar to Envelopes. The only difference is that the
bands of Envelopes are plotted a fixed distance (%) away from the moving average, while the
Bollinger Bands are plotted a certain number of standard deviations away from it. Standard
deviation is a measure of volatility, therefore Bollinger Bands adjust themselves to the market
conditions. When the markets become more volatile, the bands widen and they contract
during less volatile periods.
Bollinger Bands are usually plotted on the price chart, but they can be also added to the
indicator chart. Just like in case of the Envelopes, the interpretation of the Bollinger Bands is
based on the fact that the prices tend to remain in between the top and the bottom line of
the bands. A distinctive feature of the Bollinger Band indicator is its variable width due to the
volatility of prices. In periods of considerable price changes (i.e. of high volatility) the bands
widen leaving a lot of room to the prices to move in. During standstill periods, or the periods
of low volatility the band contracts keeping the prices within their limits..
The following traits are particular to the Bollinger Band:
1.
abrupt changes in prices tend to happen after the band has contracted due to decrease
of volatility;
2.
if prices break through the upper band, a continuation of the current trend is to be
expected;
3.
if the pikes and hollows outside the band are followed by pikes and hollows inside the
band, a reverse of trend may occur;
4.
the price movement that has started from one of the bands lines usually reaches the
opposite one.
The last observation is useful for forecasting price guideposts.
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Calculation
Bollinger bands are formed by three lines. The middle line (ML) is a usual Moving Average.
ML = SUM (CLOSE, N) / N = SMA (CLOSE, N)
The top line (TL) is the same as the middle line a certain number of standard deviations (D).
TL = ML + (D * StdDev)
The bottom line (BL) is the middle line shifted down by the same number of standard
deviations.
BL = ML - (D * StdDev)
Where:
SUM (..., N) sum for N periods;
CLOSE close price;
N number of periods used in calculation;
SMA Simple Moving Average;
SQRT square root;
StdDev standard deviation:
StdDev = SQRT (SUM ((CLOSE SMA (CLOSE, N))^2, N)/N)
It is recommended to use 20-period Simple Moving Average as the middle line, and plot top
and bottom lines two standard deviations away from it. Besides, moving averages of less than
10 periods are of little effect.
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Double Exponential Moving Average

Double Exponential Moving Average Technical Indicator (DEMA) was developed by Patrick
Mulloy and published in February 1994 in the "Technical Analysis of Stocks & Commodities"
magazine. It is used for smoothing price series and is applied directly on a price chart of a
financial security. Besides, it can be used for smoothing values of other indicators.
The advantage of this indicator is that it eliminates false signals at the saw-toothed price
movement and allows saving a position at a strong trend.
Wizard.
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Calculation
This indicator is based on the Exponential Moving Average (EMA). Let's view the error of price
deviation from EMA value:
err(i) = Price(i) - EMA(Price, N, i)
Where:
err(i) current EMA error;
Price(i) current price;
EMA(Price, N, i) current EMA value of Price series with N period.
Let's add the value of the exponential average error to the value of the exponential moving
average of a price and we will receive DEMA:
DEMA(i) = EMA(Price, N, i) + EMA(err, N, i) = EMA(Price, N, i) + EMA(Price - EMA(Price, N, i),
N, i) =
= 2 * EMA(Price, N, i) - EMA(Price - EMA(Price, N, i), N, i) = 2 * EMA(Price, N, i) - EMA2(Price,
N, i)
Where:
EMA(err, N, i) current value of the exponential average of error err;
EMA2(Price, N, i) current value of the double consequential smoothing of prices.
Envelopes
Envelopes Technical Indicator is formed with two Moving Averages, one of which is shifted
upward and another one is shifted downward. The selection of optimum relative number of
band margins shifting is determined with the market volatility: the higher the latter is, the
stronger the shift is.
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Envelopes define the upper and the lower margins of the price range. Signal to sell appears
when the price reaches the upper margin of the band; signal to buy appears when the price
reaches the lower margin.
The logic behind envelopes is that overzealous buyers and sellers push the price to the
extremes (i.e., the upper and lower bands), at which point the prices often stabilize by
moving to more realistic levels. This is similar to the interpretation ofBollinger Bands (BB).
Wizard.
Calculation
UPPER BAND = SMA (CLOSE, N) * [1 + K / 1000]
LOWER BAND = SMA (CLOSE, N) * [1 - K / 1000]
Where:
UPPER BAND upper line of the indicator;
LOWER BAND lower line of the indicator;
CLOSE close price;
N period of averaging;
K / 1000 the value of shifting from the average (measured in basis points).
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Fractal Adaptive Moving Average

Fractal Adaptive Moving Average Technical Indicator (FRAMA) was developed by John Ehlers.
This indicator is constructed based on the algorithm of the Exponential Moving Average, in
which the smoothing factor is calculated based on the current fractal dimension of the price
series. The advantage of FRAMA is the possibility to follow strong trend movements and to
sufficiently slow down at the moments of price consolidation.
All types of analysis used for Moving Averages can be applied to this indicator.
Wizard.
Calculation
FRAMA(i) = A(i) * Price(i) + (1 - A(i)) * FRAMA(i-1)
Where:
FRAMA(i) current value of FRAMA;
FRAMA(i-1) previous value of FRAMA;
A(i) current factor of exponential smoothing.
Exponential smoothing factor is calculated according to the below formula:
A(i) = EXP(-4.6 * (D(i) - 1))
Where:
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D(i) current fractal dimension;

EXP() mathematical function of exponent.
Fractal dimension of a straight line is equal to one. It is seen from the formula that if D = 1,
then A = EXP(-4.6 *(1-1)) = EXP(0) = 1. Thus if price changes in straight lines, exponential
smoothing is not used, because in such a case the formula looks like this::
FRAMA(i) = 1 * Price(i) + (1 1) * FRAMA(i1) = Price(i)
I.e. the indicator exactly follows the price.
The fractal dimension of a plane is equal to two. From the formula we get that if D = 2, then
the smoothing factor A = EXP(-4.6*(2-1)) = EXP(-4.6) = 0.01. Such a small value of the
exponential smoothing factor is obtained at moments when price makes a strong saw-toothed
movement. Such a strong slow-down corresponds to approximately 200-period simple moving
average.
Formula of fractal dimension:
D = (LOG(N1 + N2) - LOG(N3))/LOG(2)
It is calculated based on the additional formula:
N(Length,i) = (HighestPrice(i) - LowestPrice(i))/Length
Where:
HighestPrice(i) current maximal value for Length periods;
LowestPrice(i) current minimal value for Length periods;
Values N1, N2 and N3 are respectively equal to:
N1(i) = N(Length,i)
N2(i) = N(Length,i + Length)
N3(i) = N(2 * Length,i)
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Ichimoku Kinko Hyo

Ichimoku Kinko Hyo Technical Indicator is predefined to characterize the market Trend,
Support and Resistance Levels, and to generate signals of buying and selling. This indicator
works best at weekly and daily charts.
When defining the dimension of parameters, four time intervals of different length are used.
The values of individual lines composing this indicator are based on these intervals:
Tenkan-sen shows the average price value during the first time interval defined as the
sum of maximum and minimum within this time, divided by two;
Kijun-sen shows the average price value during the second time interval;
Senkou Span A shows the middle of the distance between two previous lines shifted
forwards by the value of the second time interval;
Senkou Span B shows the average price value during the third time interval shifted
forwards by the value of the second time interval.
Chikou Span shows the closing price of the current candle shifted backwards by the value of
the second time interval. The distance between the Senkou lines is hatched with another
color and called "cloud". If the price is between these lines, the market should be considered
as non-trend, and then the cloud margins form the support and resistance levels.
If the price is above the cloud, its upper line forms the first support level, and the
second line forms the second support level;
If the price is below cloud, the lower line forms the first resistance level, and the upper
one forms the second level;
If the Chikou Span line traverses the price chart in the bottom-up direction it is signal to
buy. If the Chikou Span line traverses the price chart in the top-down direction it is signal to
sell.
Kijun-sen is used as an indicator of the market movement. If the price is higher than this
indicator, the prices will probably continue to increase. When the price traverses this line the
further trend changing is possible. Another kind of using the Kijun-sen is giving signals. Signal
to buy is generated when the Tenkan-sen line traverses the Kijun-sen in the bottom-up
direction. Top-down direction is the signal to sell. Tenkan-sen is used as an indicator of the
market trend. If this line increases or decreases, the trend exists. When it goes horizontally, it
means that the market has come into the channel.
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Moving Average
The Moving Average Technical Indicator shows the mean instrument price value for a certain
period of time. When one calculates the moving average, one averages out the instrument
price for this time period. As the price changes, its moving average either increases, or
decreases.
There are four different types of moving averages: Simple (also referred to as
Arithmetic), Exponential, Smoothed andWeighted. Moving Average may be calculated for any
sequential data set, including opening and closing prices, highest and lowest prices, trading
volume or any other indicators. It is often the case when double moving averages are used.
The only thing where moving averages of different types diverge considerably from each
other, is when weight coefficients, which are assigned to the latest data, are different. In
case we are talking of Simple Moving Average, all prices of the time period in question, are
equal in value. Exponential Moving Average and Linear Weighted Moving Average attach more
value to the latest prices.
The most common way to interpreting the price moving average is to compare its dynamics to
the price action. When the instrument price rises above its moving average, a buy signal
appears, if the price falls below its moving average, what we have is a sell signal.
This trading system, which is based on the moving average, is not designed to provide
entrance into the market right in its lowest point, and its exit right on the peak. It allows to
act according to the following trend: to buy soon after the prices reach the bottom, and to
sell soon after the prices have reached their peak.
Moving averages may also be applied to indicators. That is where the interpretation of
indicator moving averages is similar to the interpretation of price moving averages: if the
indicator rises above its moving average, that means that the ascending indicator movement
106
is likely to continue: if the indicator falls below its moving average, this means that it is likely
to continue going downward.
Here are the types of moving averages on the chart:
Simple Moving Average (SMA)

Exponential Moving Average (EMA)
Smoothed Moving Average (SMMA)
Linear Weighted Moving Average (LWMA)
Wizard.
Calculation
Simple Moving Average (SMA)
Simple, in other words, arithmetical moving average is calculated by summing up the prices
of instrument closure over a certain number of single periods (for instance, 12 hours). This
value is then divided by the number of such periods.
SMA = SUM (CLOSE (i), N) / N
Where:
SUM sum;
CLOSE (i) current period close price;
N number of calculation periods.
Exponential Moving Average (EMA)
107
Exponentially smoothed moving average is calculated by adding of a certain share of the

current closing price to the previous value of the moving average. With exponentially
smoothed moving averages, the latest close prices are of more value. P-percent exponential
moving average will look like:
EMA = (CLOSE (i) * P) + (EMA (i - 1) * (1 - P))
Where:
CLOSE (i) current period close price;
EMA (i - 1) value of the Moving Average of a preceding period;
P the percentage of using the price value.
Smoothed Moving Average (SMMA)

The first value of this smoothed moving average is calculated as the simple moving average
(SMA):
SUM1 = SUM (CLOSE (i), N)
SMMA1 = SUM1 / N
The second moving average is calculated according to this formula:
SMMA (i) = (SMMA1*(N-1) + CLOSE (i)) / N
Succeeding moving averages are calculated according to the below formula:
PREVSUM = SMMA (i - 1) * N
SMMA (i) = (PREVSUM - SMMA (i - 1) + CLOSE (i)) / N
Where:
SUM sum;
SUM1 total sum of closing prices for N periods; it is counted from the previous bar;
PREVSUM smoothed sum of the previous bar;
SMMA (i-1) smoothed moving average of the previous bar;
SMMA (i) smoothed moving average of the current bar (except for the first one);
CLOSE (i) current close price;
N smoothing period.
After arithmetic conversions the formula can be simplified:
SMMA (i) = (SMMA (i - 1) * (N - 1) + CLOSE (i)) / N
Linear Weighted Moving Average (LWMA)
108
In the case of weighted moving average, the latest data is of more value than more early
data. Weighted moving average is calculated by multiplying each one of the closing prices
within the considered series, by a certain weight coefficient:
LWMA = SUM (CLOSE (i) * i, N) / SUM (i, N)
Where:
SUM sum;
CLOSE(i) current close price;
SUM (i, N) total sum of weight coefficients;
N smoothing period.
Parabolic SAR
Parabolic SAR Technical Indicator was developed for analyzing the trending markets. The
indicator is constructed on the price chart. This indicator is similar to Moving Average with the
only difference that Parabolic SAR moves with higher acceleration and may change its position
in terms of the price. The indicator is below the prices on the bull market (Up Trend), when
the market is bearish (Down Trend), it is above the prices.
If the price crosses Parabolic SAR lines, the indicator turns, and its further values are situated
on the other side of the price. When such an indicator turn does take place, the maximum or
the minimum price for the previous period would serve as the starting point. When the
indicator makes a turn, it gives a signal of the trend end (correction stage or flat), or of its
turn.
109
The Parabolic SAR is an outstanding indicator for providing exit points. Long positions should
be closed when the price sinks below the SAR line, short positions should be closed when the
price rises above the SAR line. It means one should trace the movement of Parabolic SAR and
hold open positions only in the direction of this movement. It is often the case that the
indicator serves as a trailing stop line.
If the long position is open (i.e., the price is above the SAR line), the Parabolic SAR line will
go up, regardless of what direction the prices take. The length of the SAR line movement
depends on the scale of the price movement.
Wizard.
Calculation
For long positions:
SAR (i) = SAR (i - 1) + ACCELERATION * (HIGH (i - 1) - SAR (i - 1))
For short positions:
SAR (i) = SAR (i - 1) + ACCELERATION * (LOW (i - 1) - SAR (i - 1))
Where:
SAR (i - 1) value of Parabolic SAR on the previous bar;
ACCELERATION acceleration factor;
HIGH (i - 1) maximal price for the previous period;
LOW (i - 1) minimal price for the previous period.
110
The indicator value increases if the price of the current bar is higher than previous bullish and
vice versa. The acceleration factor (ACCELERATION) will double at the same time, which
would cause Parabolic SAR and the price to come together. In other words, the faster the
price grows or sinks, the faster the indicator approaches the price.
111
Standard Deviation
Standard Deviation value of the market volatility measurement. This indicator describes the
range of price fluctuations relative to Moving Average. So, if the value of this indicator is
high, the market is volatile, and prices of bars are rather spread relative to the moving
average. If the indicator value is low, the market can described as having a low volatility, and
prices of bars are rather close to the moving average.
Normally, this indicator is used as a constituent of other indicators. Thus, when
calculating Bollinger Bands one has to add the symbol standard deviation value to its moving
average.
The market behavior represents the interchange of high trading activity and languid market.
So, the indicator can be interpreted easily:
if its value is too low, i.e., the market is absolutely inactive, it makes sense to expect a
spike soon;
otherwise, if it is extremely high, it most probably means that activity will decline soon.
112
Calculation
StdDev (i) = SQRT (AMOUNT (j = i - N, i) / N)
AMOUNT (j = i - N, i) = SUM ((ApPRICE (j) - MA (ApPRICE , N, i)) ^ 2)
Where:
StdDev (i) Standard Deviation of the current bar;
SQRT square root;
AMOUNT(j = i - N, i) sum of squares from j = i - N to i;
N smoothing period;
ApPRICE (j) applied price of the j bar;
MA (ApPRICE , N, i) moving average value with the N period on the current bar;
ApPRICE (i) applied price of the current bar.
Triple Exponential Moving Average

Triple Exponential Moving Average Technical Indicator (TEMA) was developed by Patrick Mulloy
and published in the "Technical Analysis of Stocks & Commodities" magazine. The principle of
its calculation is similar to DEMA (Double Exponential Moving Average). The name "Triple
Exponential Moving Average" does not very correctly reflect its algorithm. This is a unique
blend of the single, double and triple exponential moving average providing the smaller lag
than each of them separately.
TEMA can be used instead of traditional moving averages. It can be used for smoothing price
data, as well as for smoothing other indicators.
113
Wizard.
Calculation
First DEMA is calculated, then the error of price deviation from DEMA is calculated:
err(i) = Price(i) DEMA(Price, N, ii)
Where:
err(i) current DEMA error;
DEMA(Price, N, i) current DEMA value from Price series with N period.
Then add value of the exponential average of the error and get TEMA:
TEMA(i) = DEMA(Price, N, i) + EMA(err, N, i) = DEMA(Price, N, i) + EMA(Price - EMA(Price, N,
i), N, i) =
= DEMA(Price, N, i) + EMA(Price - DEMA(Price, N, i), N, i) = 3 * EMA(Price, N, i) - 3 *
EMA2(Price, N, i) + EMA3(Price, N, i)
Where:
EMA(err, N, i) current value of the exponential average of the
EMA2(Price, N, i) current value of the double sequential price
EMA3(Price, N, i) current value of the triple sequential price smoothing.
114
err error;
smoothing;
115

Variable Index Dynamic Average Technical Indicator (VIDYA) was developed by Tushar Chande.
It is an original method of calculating the Exponential Moving Average (EMA) with the
dynamically changing period of averaging. Period of averaging depends on the market
volatility; as the measure of volatility Chande Momentum Oscillator (CMO) was chosen. This
oscillator measures the ratio between the sum of positive increments and sum of negative
increments for a certain period (CMO period). CMO value is used as the ratio to the smoothing
factor EMA. Thus VIDYA has to setup parameters: period of CMO and period of EMA.
116
Application
Usually not VIDYA itself is used in trading systems, but its upper and lower borders (Upper
band & Lower band), that are by N% above and below VIDYA. Interpretation of the indicator
for receiving trade signals in this form is performed similar to Bollinger Bands.
Calculation
The standard Exponential Moving Average is calculated according to the below formula:
EMA(i) = Price(i) * F + EMA(i-1)*(1-F)
Where:
F = 2/(Period_EMA+1) smoothing factor;
Period_EMA EMA averaging period;
EMA(i-1) previous value of EMA.
The value of Variable Index Dynamic Average is calculated in the analogous way using CMO:
VIDYA(i) = Price(i) * F * ABS(CMO(i)) + VIDYA(i-1) * (1 - F* ABS(CMO(i)))
Where:
ABS(CMO(i)) absolute current value Chande Momentum Oscillator;
VIDYA(i-1) previous value of VIDYA.
The value of CMO is calculated according to the below formula:
CMO(i) = (UpSum(i) - DnSum(i))/(UpSum(i) + DnSum(i))
117
Where:
UpSum(i) = current sum of positive price increments for the period;
DnSum(i) = current sum of negative price increments for the period.
118
Oscillators
Oscillators show price deviation from its average value. Oscillators help to predict the
approaching correction or the direction of price oscillation phase. Oscillators best suit the
purpose of decision making when there is no vivid trend in the market.
The following oscillators are available in the client terminal:
Average True Range

Bears Power
Bulls Power
Chaikin Oscillator
Commodity Channel Index
DeMarker
Force Index
MACD
Momentum
Moving Average of Oscillator
Relative Strength Index
Relative Vigor Index
119
Stochastic Oscillator
Triple Exponential Average
Williams' Percent Range
120
Average True Range

Average True Range Technical Indicator (ATR) is an indicator that shows volatility of the
market. It was introduced by Welles Wilder in his book "New concepts in technical trading
systems". This indicator has been used as a component of numerous other indicators and
trading systems ever since.
Average True Range can often reach a high value at the bottom of the market after a sheer
fall in prices occasioned by panic selling. Low values of the indicator are typical for the
periods of sideways movement of long duration which happen at the top of the market and
during consolidation. Average True Range can be interpreted according to the same principles
as other volatility indicators. The principle of forecasting based on this indicator can be
worded the following way: the higher the value of the indicator, the higher the probability of
a trend change; the lower the indicators value, the weaker the trends movement is.
Calculation
True Range is the greatest of the following three values:
difference between the current maximum and minimum (high and low);
difference between the previous closing price and the current maximum;
difference between the previous closing price and the current minimum.
The indicator of Average True Range is a moving average of values of the true range.
Bears Power
121
Everyday trading represents a battle of buyers ("Bulls") pushing prices up and sellers ("Bears")
pushing prices down. Depending on what party scores off, the day will end with a price that is
higher or lower than that of the previous day. Intermediate results, first of all the highest and
lowest price, allow to judge about how the battle was developing during the day.
It is very important to be able to estimate the Bears Power balance since changes in this
balance initially signalize about possible trend reversal. This task can be solved using the
Bears Power oscillator developed by Alexander Elder and and described in his book titled
Trading for a Living. Elder based on the following premises when deducing this oscillator:
moving average is a price agreement between sellers and buyers for a certain period of
time,
the lowest price displays the maximum sellers' power within the day.
On these premises, Elder developed Bears Power as the difference between the lowest price
and 13-period exponential moving average (LOW - EMA).
Application
This indicator is better to use together with a trend indicator (most frequently Moving
Average):
if trend indicator is up-directed and the Bears Power index is below zero, but growing, it
is a signal to buy;
it is desirable that, in this case, the divergence of bases were being formed in the
indicator chart.
Wizard.
Calculation
122
The first stage of this indicator calculation is calculation of the exponential moving average
(as a rule, it is recommended to use the 13-period EMA).
BEARS = LOW - EMA
Where:
BEARS Bears' Power;
LOW the lowest price of the current bar;
EMA Exponential Moving Average.
In the down-trend, LOW is lower than EMA, so the Bears Power is below zero and histogram is
located below zero line. If LOW rises above EMA when prices grow, the Bears Power becomes
above zero and its histogram rises above zero line.
Bulls Power
Everyday trading represents a battle of buyers ("Bulls") pushing prices up and sellers ("Bears")
pushing prices down. Depending on what party scores off, the day will end with a price that is
higher or lower than that of the previous day. Intermediate results, first of all the highest and
lowest price, allow to judge about how the battle was developing during the day.
It is very important to be able to estimate the Bulls Power balance since changes in this
balance initially signalize about possible trend reversal. This task can be solved using the Bulls
Power oscillator developed by Alexander Elder and and described in his book titled Trading for
a Living. Elder based on the following premises when deducing this oscillator:
moving average is a price agreement between sellers and buyers for a certain period of
time,
the highest price displays the maximum buyers' power within the day.
On these premises, Elder developed Bulls Power as the difference between the highest price
and 13-period exponential moving average (HIGH - EMA).
Application
This indicator is better to use together with a trend indicator (most frequently Moving
Average):
if trend indicator is down-directed and the Bulls Power index is above zero, but falling,
it is a signal to sell;
it is desirable that, in this case, the divergence of peaks were being formed in the
indicator chart.
Wizard.
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Calculation
The first stage of this indicator calculation is calculation of the exponential moving average
(as a rule, it is recommended to use the 13-period EMA).
BULLS = HIGH - EMA
Where:
BULLS Bulls' Power;
HIGH the highest price of the current bar;
EMA Exponential Moving Average.
In the up-trend, HIGH is higher than EMA, so the Bulls Power is above zero and histogram is
located above zero line. If HIGH falls under EMA when prices fall, the Bulls Power becomes
below zero and its histogram falls under zero line.
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125
Chaikin Oscillator
Chaikin's Oscillator (CHO) is the difference of moving averages of Accumulation/Distribution.
"The concept of this oscillator is based on three main theses. First: if a share or an index is
higher when it closes than it was during the day (you can calculate the average value as
[max+min]/2), it means that it was a day of accumulation. The closer the closing index of a
share or an index gets to the maximum, the more active the accumulation is. Vice versa, if a
share's closing price is lower than the average level of the day, it means that distribution took
place. The closer to the minimum the share gets, the more active is the distribution.
Second: stable price growth is accompanied by increase in trade volume and strong
accumulation of the volume. As the volume is like fuel that feeds market growth, the lag of
volume along with the growth of prices shows that there isn't enough fuel to continue the
rise.
Vice versa, a slump in prices is usually accompanied by low amount and ends up in panic
liquidation of positions by institutional investors. Therefore, first of all we see a growth of
volume, then a slump in prices accompanied by reduced volume and finally, when the market
is close to foundation, some accumulation takes place.
Third: with a Chaikin's oscillator you can trace back the volume of money resources coming in
to the market and leaving it. Comparing the dynamics of volume and prices allows finding out
peaks and foundations of the market, both short- and medium-term.
As there are no correct methods of technical analysis, I would recommend you using this
oscillator along with other technical indicators. The reliability of short-term and mediumterm trade signals will be higher if you use a Chaikin's oscillator together with, for
example, Envelopes based on a 21-day moving average and some oscillator of
outbidding/resale.
The most important signal arises when the prices reach a maximum or a minimum level
(especially on the level of outbidding/resale), but the Chaikin's oscillator can't overcome its
previous extremum and so it turns around.
Signals moving in the direction of the medium-term trend are more reliable than those
moving against it.
The fact that an oscillator confirms a new maximum or minimum doesn't mean that the
prices will move on in that direction. I regard this event as unimportant.
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Another way of using Chaikin's oscillator implies the following: a change in its direction is a
signal for purchase or a sale, but only if it coincides with the price trend direction. For
example, if a share is on the rise and its price is higher than a 90-day moving average, then
an up-turn of the oscillator curve in the area of negative values can be regarded as a signal
for purchase (but the share price must be higher than a 90-day moving average - not less).
A down-turn of the oscillator curve in the area of positive values (above zero) can be regarded
as a signal for sale, but the share price must be lower than the 90-day moving average of
closing prices."
Calculation
To calculate the Chaikin's oscillator, you must subtract a 10-period exponential moving
average ofAccumulation/Distribution indicator from a 3-period exponential moving average of
the same indicator.
CHO = EMA (A/D, 3) - EMA (A/D, 10)
Where:
EMA exponential moving average;
A/D value of the Accumulation/Distribution indicator.
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Commodity Channel Index

Commodity Channel Index Technical Indicator (CCI) measures the deviation of the commodity
price from its average statistical price. High values of the index point out that the price is
unusually high being compared with the average one, and low values show that the price is
too low. In spite of its name, the Commodity Channel Index can be applied for any financial
instrument, and not only for the wares.
There are two basic techniques of using Commodity Channel Index:
1.
Finding the divergences

The divergence appears when the price reaches a new maximum, and Commodity Channel
Index can not grow above the previous maximums. This classical divergence is normally
followed by the price correction.
2.
As an indicator of overbuying/overselling
Commodity Channel Index usually varies in the range of 100. Values above +100 inform about
overbuying state (and about a probability of correcting decay), and the values below 100
inform about the overselling state (and about a probability of correcting increase).
128
Wizard.
Calculation
1.
To find a Typical Price. You need to add the HIGH, the LOW, and the CLOSE prices of each
bar and then divide the result by 3:
TP = (HIGH + LOW + CLOSE) / 3
2.
To calculate the n-period Simple Moving Average of Typical Prices:

SMA (TP, N) = SUM (TP, N) / N
3.
To subtract the received SMA(TP, N) from Typical Prices of each of preceding n periods:
D = TP - SMA (TP, N)
4.
To calculate the n-period Simple Moving Average of absolute D values:

SMA (D, N) = SUM (D, N) / N
5.
To multiply the received SMA(D, N) by 0,015:

M = SMA (D, N) * 0,015
6.
To divide M by D:
CCI = M / D
Where:
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HIGH maximal bar price;

LOW minimal bar price;
CLOSE close price;
SUM sum;
N number of periods used for calculation.
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DeMarker
Demarker Technical Indicator (DeM) is based on the comparison of the period maximum with
the previous period maximum. If the current period (bar) maximum is higher, the respective
difference between the two will be registered. If the current maximum is lower or equaling
the maximum of the previous period, the naught value will be registered. The differences
received for N periods are then summarized. The received value is used as the numerator of
the DeMarker and will be divided by the same value plus the sum of differences between the
price minima of the previous and the current periods (bars). If the current price minimum is
greater than that of the previous bar, the naught value will be registered.
When the indicator falls below 30, the bullish price reversal should be expected. When the
indicator rises above 70, the bearish price reversal should be expected.
If you use periods of longer duration, when calculating the indicator, youll be able to catch
the long term market tendency. Indicators based on short periods let you enter the market at
the point of the least risk and plan the time of transaction so that it falls in with the major
trend.
Wizard.
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Calculation
The value of the DeMarker for the "i" interval is calculated as follows:
DeMax (i) is calculated. If HIGH (i) > HIGH (i - 1), then:
DeMax (i) = HIGH (i) - HIGH (i - 1)
otherwise
DeMax (i) = 0
DeMin (i) is calculated. If LOW (i) < LOW (i - 1), then:
DeMin (i) = LOW (i - 1) - LOW (i)
otherwise
DeMin (i) = 0
The value of the DeMarker is calculated as:
DMark (i) = SMA (DeMax, N) / (SMA (DeMax, N) + SMA (DeMin, N))
Where:
HIGH (i) the highest price of the current bar;
LOW (i) the lowest price of the current bar;
HIGH (i - 1) the highest price of the previous bar;
LOW (i - 1) the lowest price of the previous bar;
N number of periods used for calculation.
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Force Index
Force Index Technical Indicator was developed by Alexander Elder. This index measures the
Bulls Power at each increase, and the Bears Power at each decrease. It connects the basic
elements of market information: price trend, its drops, and volumes of transactions. This
index can be used as it is, but it is better to approximate it with the help of Moving Average.
Approximation with the help a short moving average (the author proposes to use 2 intervals)
contributes to finding the best opportunity to open and close positions. If the approximations
is made with long moving average (period 13), the index shows the trends and their changes.
It is better to buy when the forces become minus (fall below zero) in the period of
indicator increasing tendency;
The force index signalizes the continuation of the increasing tendency when it increases
to the new peak;
The signal to sell comes when the index becomes positive during the decreasing
tendency;
The force index signalizes the Bears' Power and continuation of the decreasing tendency
when the index falls to the new depth;
If price changes do not correlate to the corresponding changes in volume, the force
indicator stays on one level, which tells you the trend is going to change soon.
134
Calculation
The force of every market movement is characterized by its direction, scale and volume. If
the closing price of the current bar is higher than the preceding bar, the force is positive. If
the current closing price is lower than the preceding one, the force is negative. The greater
the difference in prices is, the greater the force is. The greater the transaction volume is, the
greater the force is..
FORCE INDEX (i) = VOLUME (i) * ((MA (ApPRICE, N, i) - MA (ApPRICE, N, i-1))
Where:
FORCE INDEX (i) Force Index of the current bar;
VOLUME (i) volume of the current bar;
MA (ApPRICE, N, i) any Moving Average of the current bar for N periods:
Simple, Exponential, Weighted or Smoothed;
ApPRICE applied price;
N period of smoothing;
MA (ApPRICE, N, i-1) any Moving Average of the previous bar.
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136
MACD
Moving Average Convergence/Divergence (MACD) is a trend-following dynamic indicator. It
indicates the correlation between two Moving Averages of a price.
The Moving Average Convergence/Divergence (MACD) Technical Indicator is the difference
between a 26-period and 12-periodExponential moving averages (EMA). In order to clearly
show buy/sell opportunities, a so-called signal line (9-period moving average of the indicator)
is plotted on the MACD chart.
The MACD proves most effective in wide-swinging trading markets. There are three popular
ways to use the Moving Average Convergence/Divergence: crossovers, overbought/oversold
conditions, and divergences.
Crossovers
The basic MACD trading rule is to sell when the MACD falls below its signal line. Similarly, a
buy signal occurs when the Moving Average Convergence/Divergence rises above its signal
line. It is also popular to buy/sell when the MACD goes above/below zero.
Overbought/Oversold Conditions
The MACD is also useful as an overbought/oversold indicator. When the shorter moving
average pulls away dramatically from the longer moving average (i.e., the MACD rises), it is
likely that the symbol price is overextending and will soon return to more realistic levels.
Divergence
An indication that an end to the current trend may be near occurs when the MACD diverges
from the symbol. A bullish divergence occurs when the Moving Average
Convergence/Divergence indicator is making new highs while prices fail to reach new highs. A
bearish divergence occurs when the MACD is making new lows while prices fail to reach new
lows. Both of these divergences are most significant when they occur at relatively
overbought/oversold levels.
Wizard.
137
Calculation
The MACD is calculated by subtracting the value of a 26-period exponential moving average
from a 12-period exponential moving average. A 9-period dotted simple moving average of the
MACD (the signal line) is then plotted on top of the MACD.
MACD = EMA(CLOSE, 12) - EMA(CLOSE, 26)
SIGNAL = SMA(MACD, 9)
Where:
EMA Exponential Moving Average;
SIGNAL the signal line of the indicator.
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Momentum
The Momentum Technical Indicator measures the change of price of a financial instrument
over a given time span. There are basically two ways to use the Momentum indicator:
As a trend-following indicator analogous to Moving Average Convergence/Divergence

(MACD). In this case a signal to buy occurs if the Momentum indicator makes up a trough and
starts rising; a signal to sell occurs when it reaches peak and turns down. You may want to
plot a short-term moving average of the indicator to determine when it is bottoming or
peaking.
Extremely high or low values of Momentum imply continuation of the current trend. Thus if
the indicator reaches extremely high values and then turns down, the further price growth
should be expected. In any case, a position should be opened or closed only after prices
confirm the signal generated by the indicator.
As a leading indicator. This method assumes that the final phase of an up-trend is usually
accompanied by a rapid price increase (when everyone expects prices to go higher), and that
the end of bears' market is characterized by rapid price declines (when everyone wants to get
out). This is often the case, but it is also a broad generalization.
When market approaches a peak there is a sharp leap of the Momentum indicator. After that
it starts to fall while prices keep on growing or move horizontally. Analogous to that, at the
market bottom Momentum sharply falls and then turns up long before prices start growing.
Both of these situations result in divergences between the indicator and prices.
139
Calculation
Momentum is calculated as a ratio of todays price to the price n periods ago:
MOMENTUM = CLOSE (i) / CLOSE (i - n) * 100
Where:
CLOSE (i) close price of the current bar;
CLOSE (i - n) close price n bars ago.
Moving Average of Oscillator

Moving Average of Oscillator (OsMA) is the difference between the oscillator and oscillator
smoothing. In this case, Moving Average Convergence/Divergence base-line is used as the
oscillator, and the signal line is used as the smoothing.
140
Calculation
OSMA = MACD - SIGNAL
Relative Strength Index

The Relative Strength Index Technical Indicator (RSI) is a price-following oscillator that ranges
between 0 and 100. When Wilder introduced the Relative Strength Index, he recommended
using a 14-period RSI. Since then, the 9-period and 25-period Relative Strength Index
indicators have also gained popularity. A popular method of analyzing the RSI is to look for a
divergence in which the security is making a new high, but the RSI is failing to surpass its
previous high. This divergence is an indication of an impending reversal. When the Relative
Strength Index then turns down and falls below its most recent trough, it is said to have
completed a "failure swing". The failure swing is considered a confirmation of the impending
reversal.
The following signals of Relative Strength Index are used in chart analyzing:
Tops and Bottoms

The Relative Strength Index usually tops above 70 and bottoms below 30. It usually forms
these tops and bottoms before the underlying price chart.
Chart Formations
The RSI often forms chart patterns such as head and shoulders or triangles that may be or may
not be visible on the price chart.
Failure Swing (Support or Resistance breakout)
This is where the Relative Strength Index surpasses a previous high (peak) or falls below a
recent low (trough).
Support and Resistance levels
The Relative Strength Index shows, sometimes more clearly than price themselves, levels of
support and resistance.
141
Divergences
As discussed above, divergences occur when the price makes a new high (or low) that is not
confirmed by a new high (or low) in the Relative Strength Index. Prices usually correct and
move in the direction of the RSI.
Wizard.
Calculation
This is the main formula of Relative Strength Index calculation:
RSI = 100 - (100 / (1 + U / D))
Where:
U average number of positive price changes;
D average number of negative price changes.
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Relative Vigor Index

The main point of Relative Vigor Index Technical Indicator (RVI) is that on the bull market the
closing price is, as a rule, higher, than the opening price. It is the other way round on the
bear market. So the idea behind Relative Vigor Index is that the vigor, or energy, of the move
is thus established by where the prices end up at the close. To normalize the index to the
daily trading range, divide the change of price by the maximum range of prices for the day. To
make a more smooth calculation, one uses Simple Moving Average. 10 is considered the best
period. To avoid probable ambiguity one needs to construct a signal line, which is a 4-period
symmetrically weighted moving average of Relative Vigor Index values. The concurrence of
lines serves as a signal to buy or to sell.
Wizard.
143
Calculation
RVI is calculated similarly to Stochastic Oscillator. However, the Vigor Index compares close
levels relative to opening levels, and not the minimal price as is done by Stochastic. The
indicator is calculated as the value equal to the actual price change for the period,
normalized to the maximal range of price change for this period, for example a day or hour.
RVI = (CLOSE - OPEN) / (HIGH - LOW)
Where:
OPEN opening price;
HIGH highest price;
LOW lowest price;
CLOSE closing price.
Usually RVI is displayed as two lines:
1. The first one is build the same as RVI, but instead of Close and Open price difference and
High and Low price difference sums of 4-period symmetrically weighted moving averages are
used. I.e. the 4-period symmetrically weighted average of a numerator is calculated:
MovAverage = (CLOSE-OPEN) + 2 * (CLOSE-1 - OPEN-1) + 2 * (CLOSE-2 - OPEN-2) + (CLOSE-3 OPEN-3)
Where:
CLOSE current close price;
CLOSE-1, CLOSE-2, CLOSE-3 close prices 1, 2 and 3 periods ago;
OPEN current open price;
OPEN-1, OPEN-2, OPEN-3 open prices 1, 2 and 3 periods ago.
144
Then the 4-period symmetrically weighted moving average of a denominator is found:

RangeAverage = (HIGH-LOW) + 2 x (HIGH-1 - LOW-1) + 2 x (HIGH-2 - LOW-2) + (HIGH-3 LOW-3),
Where:
HIGH maximal price of the last bar;
HIGH, HIGH-2, HIGH-3 maximal prices 1, 2 and 3 periods ago;
LOW minimal price of the last bar;
LOW-1, LOW-2, LOW-3 minimal prices 1, 2 and 3 periods ago.
After that we calculate the sum of these moving averages for the last 4 periods, for example
hours or days:
2. The second line is the 4-period symmetrically weighted moving average of the first line:
RVIsignal = (RVIaverage + 2 * RVIaverage-1 + 2 * RVIaverage-2 + RVIaverage-3)/6
145
Stochastic Oscillator
The Stochastic Oscillator Technical Indicator compares where a securitys price closed relative
to its price range over a given time period. The Stochastic Oscillator is displayed as two lines.
The main line is called %K. The second line, called %D, is aMoving Average of %K. The %K line
is usually displayed as a solid line and the %D line is usually displayed as a dotted line. There
are several ways to interpret a Stochastic Oscillator. Three popular methods include:
Buy when the Oscillator (either %K or %D) falls below a specific level (for example, 20)
and then rises above that level. Sell when the Oscillator rises above a specific level (for
example, 80) and then falls below that level.
Buy when the %K line rises above the %D line and sell when the %K line falls below the
%D line.
Look for divergences. For instance: where prices are making a series of new highs and
the Stochastic Oscillator is failing to surpass its previous highs.
Wizard.
Calculation
Four variables are used for the calculation of the Stochastic Oscillator:
%K periods. This is the number of time periods used in the stochastic calculation.
146
%K Slowing Periods. This value controls the internal smoothing of %K. A value of 1 is
considered a fast stochastic; a value of 3 is considered a slow stochastic.
%D periods. This is the number of time periods used when calculating a moving average
of %K.
%D method. The method (i.e., Exponential, Simple, Smoothed, or Weighted) that is used
to calculate %D.
The formula for %K is:
%K = (CLOSE - MIN (LOW (%K))) / (MAX (HIGH (%K)) - MIN (LOW (%K))) * 100
Where:
CLOSE todays closing price;
MIN (LOW (%K)) the lowest minimum in %K periods;
MAX (HIGH (%K)) the highest maximum in %K periods.
The %D moving average is calculated according to the formula:
%D = SMA (%K, N)
Where:
N smoothing period;
SMA Simple Moving Average.
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148
Triple Exponential Average

Triple Exponential Average (TRIX) was developed by Jack Hutson as an oscillator of the
overbought/oversold market conditions. It can also be used as the Momentum indicator. Triple
smoothing is used for removing the cyclic components in price movements with the period
less than that of TRIX.
The zone is used as the indicator of overbought or oversold state (positive and negative
respectively). The signal to buy is crossing of the zero line from below, or "bulls'" divergence;
the signal to sell is the indicator's crossing the zero line from above, or "bears'" divergence
with prices. The distinctive feature of the indicator is the perfect filtration of price noises
and absence of lag that is so typical of most moving averages.
Wizard.
Calculation
First the Exponential Moving Average of a price is calculated:
EMA1(i) = EMA(Price, N, i)
Where:
N EMA period;
EMA1(i) current value of the Exponential Moving Average.
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Then the second smoothing of the obtained average is performed - double exponential
smoothing:
EMA2(i) = EMA(EMA1, N, i).
The double Exponential Moving Average is smoothed exponentially once again - we get the
Triple Exponential Moving Average:
EMA3(i) = EMA(EMA2, N, i);
Now the indicator itself is calculated:
TRIX(i) = (EMA3(i) - EMA3(i - 1))/ EMA3(i-1)
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151
Williams Percent Range

Williams Percent Range Technical Indicator (%R) is a dynamic technical indicator, which
determines whether the market is overbought/oversold. Williams %R is very similar to
the Stochastic Oscillator. The only difference is that %R has an upside down scale and the
Stochastic Oscillator has internal smoothing.
Indicator values ranging between -80% and -100% indicate that the market is oversold.
Indicator values ranging between -0% and -20% indicate that the market is overbought. To
show the indicator in this upside down fashion, one places a minus symbol before the
Williams' Percent Range values (for example -30%). One should ignore the minus symbol when
conducting the analysis.
As with all overbought/oversold indicators, it is best to wait for the symbol price to change
direction before placing your trades. For example, if an overbought/oversold indicator is
showing an overbought condition, it is wise to wait for the securitys price to turn down
before selling the security.
An interesting phenomenon of the Williams' Percent Range indicator is its uncanny ability to
anticipate a reversal in the underlying securitys price. The indicator almost always forms a
peak and turns down a few days before the securitys price peaks and turns down. Likewise,
Williams Percent Range usually creates a trough and turns up a few days before the securitys
price turns up.
Wizard.
152
Calculation
Below is the formula of the %R indicator calculation, which is very similar to the Stochastic
Oscillator formula:
%R = -(MAX (HIGH (i - n)) - CLOSE (i)) / (MAX (HIGH (i - n)) - MIN (LOW (i - n))) * 100
Where:
CLOSE (i) today's closing price;
MAX (HIGH (i - n)) the highest maximum over a number (n) of previous periods;
MIN (LOW (i - n)) the lowest minimum over a number (n) of previous periods.
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154
Volume Indicators
Volume indicators are those that account for the volume. For the FOREX market 'volume'
means number of ticks (price changes) that appeared in the time interval. For stock securities
volume means the volume of executed trades (in contracts or money terms).
The following volume indicators are available in the client terminal:
Accumulation/Distribution
Money Flow Index
On Balance Volume
Volumes
155
Accumulation/Distribution
Accumulation/Distribution Technical Indicator is determined by the changes in price and
volume. The volume acts as a weighting coefficient at the change of price the higher the
coefficient (the volume) is, the greater the contribution of the price change (for this period
of time) will be in the value of the indicator.
In fact, this indicator is a variant of the more commonly used indicator On Balance Volume.
They are both used to confirm price changes by means of measuring the respective volume of
sales.
156
When the Accumulation/Distribution indicator grows, it means accumulation (buying) of a

particular security, as the overwhelming share of the sales volume is related to an upward
trend of prices. When the indicator drops, it means distribution (selling) of the security, as
most of sales take place during the downward price movement.
Divergences between the Accumulation/Distribution indicator and the price of the security
indicate the upcoming change of prices. As a rule, in case of such divergences, the price
tendency moves in the direction in which the indicator moves. Thus, if the indicator is
growing, and the price of the security is dropping, a turnaround of price should be expected.
Calculation
A certain share of the daily volume is added to or subtracted from the current accumulated
value of the indicator. The nearer the closing price to the maximum price of the day is, the
higher the added share will be. The nearer the closing price to the minimum price of the day
is, the greater the subtracted share will be. If the closing price is exactly in between the
maximum and minimum of the day, the indicator value remains unchanged.
A/D(i) =((CLOSE(i) - LOW(i)) - (HIGH(i) - CLOSE(i)) * VOLUME(i) / (HIGH(i) - LOW(i)) + A/D(i1)
Where:
A/D(i) value of the Accumulation/Distribution indicator for the current bar;
CLOSE(i) close price of the bar;
LOW(i) the lowest price of the bar;
HIGH(i) the highest price of the bar;
VOLUME(i) volume;
A/D(i-1) value of the Accumulation/Distribution indicator for the previous bar.
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158
Money Flow Index

Money Flow Index (MFI) is the technical indicator, which indicates the rate at which money is
invested into a security and then withdrawn from it. Construction and interpretation of the
indicator is similar to Relative Strength Index with the only difference that volume is
important to MFI.
When analyzing the money flow index one needs to take into consideration the following
points:
divergences between the indicator and price movement. If prices grow while MFI falls (or
vice versa), there is a great probability of a price turn;
Money Flow Index value, which is over 80 or under 20, signals correspondingly of a
potential peak or bottom of the market.
159
Calculation
The calculation of Money Flow Index includes several stages. At first one defines the typical
price (TP) of the period in question:
TP = (HIGH + LOW + CLOSE) / 3
Then one calculates the amount of the Money Flow (MF):
MF = TP * VOLUME
If todays typical price is larger than yesterdays TP, then the money flow is considered
positive. If todays typical price is lower than that of yesterday, the money flow is considered
negative.
POSITIVE MONEY FLOW is a sum of positive money flows for a selected period of time.
NEGATIVE MONEY FLOW is the sum of negative money flows for a selected period of time.
Then one calculates the money ratio (MR) by dividing the positive money flow by the negative
money flow:
MR = POSITIVE MONEY FLOW / NEGATIVE MONEY FLOW
And finally, one calculates the money flow index using the money ratio:
MFI = 100 - (100 / (1 + MR)
Where:
HIGH the highest price of the current bar;
LOW the lowest price of the current bar;
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CLOSE close price of the current bar;

VOLUME volume of the current bar.
161
On Balance Volume
On Balance Volume Technical Indicator (OBV) is a momentum technical indicator that relates
volume to price change. The indicator, which Joseph Granville came up with, is pretty simple.
If the close price of the current bar is higher than that of the previous bar, the volume of the
current bar is added to the previous OBV. If the current bar close price is lower than of the
previous one, the current volume is subtracted from the previous OBV.
The basic assumption, regarding On Balance Volume analysis, is that OBV changes precede
price changes. The theory is that smart money can be seen flowing into the security by a
rising OBV. When the public then moves into the security, both the security and the On
Balance Volume will surge ahead.
162
If the securitys price movement precedes OBV movement, a "non-confirmation" has occurred.
Non-confirmations can occur at bull market tops (when the security rises without, or before,
the OBV) or at bear market bottoms (when the security falls without, or before, the On
Balance Volume Technical Indicator).
The OBV is in a rising trend when each new peak is higher than the previous peak and each
new trough is higher than the previous trough. Likewise, the On Balance Volume is in a falling
trend when each successive peak is lower than the previous peak and each successive trough
is lower than the previous trough. When the OBV is moving sideways and is not making
successive highs and lows, it is in a doubtful trend.
Once a trend is established, it remains in force until it is broken. There are two ways in which
the On Balance Volume trend can be broken. The first occurs when the trend changes from a
rising trend to a falling trend, or from a falling trend to a rising trend.
The second way the OBV trend can be broken is if the trend changes to a doubtful trend and
remains doubtful for more than three days. Thus, if the security changes from a rising trend
to a doubtful trend and remains doubtful for only two days before changing back to a rising
trend, the On Balance Volume is considered to have always been in a rising trend.
When the OBV changes to a rising or falling trend, a "breakout" has occurred. Since OBV
breakouts normally precede price breakouts, investors should buy long on On Balance Volume
upside breakouts. Likewise, investors should sell short when the OBV makes a downside
breakout. Positions should be held until the trend changes.
Calculation
If the current close price is higher than the previous one, then:
OBV (i) = OBV (i - 1) + VOLUME (i).
If the current close price is lower than the previous one, then:
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OBV (i) = OBV (i - 1) - VOLUME (i)

If the current close price is equal to the previous one, then:
OBV (i) = OBV (i - 1)
Where:
OBV (i) value of the On Balance Volume indicator in the current period;
OBV (i - 1) value of the On Balance Volume indicator in the previous period;
VOLUME (i) volume of the current bar.
Volumes
For the Forex market the Volumes indicator is the indicator of the number of price changes
within each period of a selected timeframe. For stock symbols this is an indicator of actually
traded volumes (contracts, money, units, etc.)
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Bars of the indicator have two colors. The green color means that the volume of the current
bar is larger than that of the previous one. The red color means that the volume of the
current bar is smaller than the volume of the previous bar. The indicator colors, as well as its
application to tick or real volumes are set in the indicatorparameters.
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Bill Williams' Indicators

Bill Williams' Indicators are included into a separate group, because they are part of the
trading system described in his books.
The following Bill Williams' indicators are available in the terminal:
Accelerator Oscillator
Alligator
Awesome Oscillator
Fractals
Gator Oscillator
Market Facilitation Index
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Accelerator Oscillator
Price is the latest element to change. Prior to price changes, the market driving force changes
its direction, the driving force acceleration must slow down and reach nought. After that it
starts accelerating in the opposite direction until price starts changing its direction.
Acceleration/Deceleration Technical Indicator (AC) measures acceleration and deceleration of
the current driving force. This indicator will change direction before any changes in the
driving force, which, it its turn, will change its direction before the price. If you realize that
Acceleration/Deceleration is a signal of an earlier warning, it gives you evident advantages.
The nought line is basically the spot where the driving force is at balance with the
acceleration. If Acceleration/Deceleration is higher than nought, then it is usually easier for
the acceleration to continue the upward movement (and vice versa in cases when it is below
nought). Unlike in case with Awesome Oscillator, it is not regarded as a signal when the
nought line is crossed. The only thing that needs to be done to control the market and make
decisions is to watch for changes in color. To save yourself serious reflections, you must
remember: you can not buy with the help of Acceleration/Deceleration, when the current
column is colored red, and you can not sell, when the current column is colored green.
If you enter the market in the direction of the driving force (the indicator is higher than
nought, when buying, or it is lower than nought, when selling), then you need only two green
columns to buy (two red columns to sell). If the driving force is directed against the position
to be opened (indicator below nought for buying, or higher than nought for selling), a
confirmation is needed, hence, an additional column is required. In this case the indicator is
to show three red columns over the nought line for a short position and three green columns
below the nought line for a long position.
Wizard.
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Calculation
AC bar chart is the difference between the value of 5/34 of the driving force bar chart and 5period simple moving average, taken from that bar chart.
MEDIAN PRICE = (HIGH + LOW) / 2
AO = SMA (MEDIAN PRICE, 5) - SMA (MEDIAN PRICE, 34)
AC = AO - SMA (AO, 5)
Where:
MEDIAN PRICE median price;
HIGH the highest price of the bar;
LOW the lowest price of the bar;
AO Awesome Oscillator.
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Alligator
Most of the time the market remains stationary. Only for some 1530% of time the market
generates trends, and traders who are not located in the exchange itself derive most of their
profits from the trends. My Grandfather used to repeat: "Even a blind chicken will find its
corns, if it is always fed at the same time". We call the trade on the trend "a blind chicken
market". It took us years, but we have produced an indicator, that lets us always keep our
powder dry until we reach the "blind chicken market".
Bill Williams
Alligator Technical Indicator is a combination of Balance Lines (Moving Averages) that use
fractal geometry and nonlinear dynamics.
The blue line (Alligator's Jaw) is the Balance Line for the timeframe that was used to
build the chart (13-period Smoothed Moving Average, moved into the future by 8 bars);
Red Line (Alligator's Teeth) is the Balance Line for the value timeframe of one level
lower (8-period Smoothed Moving Average, moved by 5 bars into the future);
Green Line (Alligator's Lips) is the Balance Line for the value timeframe, one more level
lower (5-periodSmoothed Moving Average, moved by 3 bars into the future).
Lips, Teeth and Jaw of the Alligator show the interaction of different time periods. As clear
trends can be seen only 15 to 30 per cent of the time, it is essential to follow them and
refrain from working on markets that fluctuate only within certain price periods.
When the Jaw, the Teeth and the Lips are closed or intertwined, it means the Alligator is
going to sleep or is asleep already. As it sleeps, it gets hungrier and hungrier the longer it
will sleep, the hungrier it will wake up. The first thing it does after it wakes up is to open its
mouth and yawn. Then the smell of food comes to its nostrils: flesh of a bull or flesh of a
bear, and the Alligator starts to hunt it. Having eaten enough to feel quite full, the Alligator
starts to lose the interest to the food/price (Balance Lines join together) this is the time to
fix the profit.
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Calculation
ALLIGATORS JAW = SMMA (MEDIAN PRICE, 13, 8)
ALLIGATORS TEETH = SMMA (MEDIAN PRICE, 8, 5)
ALLIGATORS LIPS = SMMA (MEDIAN PRICE, 5, 3)
Where:
SMMA (A, B, C) Smoothed Moving Average. A parameter is for data to be smoothed, B is the
smoothing period, C is shift to future. For example, SMMA (MEDIAN PRICE, 5, 3) means that
the smoothed moving average will be calculated on the median price, smoothing period being
equal to 5 bars and shift being 3;
ALLIGATORS JAW Alligator's jaws (blue line);
ALLIGATORS TEETH Alligator's teeth (red line);
ALLIGATORS LIPS Alligator's lips (green line).
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Awesome Oscillator
Bill Williams's Awesome Oscillator Technical Indicator (AO) is a 34-period simple moving
average, plotted through the middle points of the bars (H+L)/2, which is subtracted from the
5-period simple moving average, built across the central points of the bars (H+L)/2. It shows
us quite clearly whats happening to the market driving force at the present moment.
Signals to Buy
"Saucer" is the only signal to buy that comes when the bar chart is higher than the nought
line. One must bear in mind:
the saucer signal is generated when the bar chart reversed its direction from the
downward to upward. The second column is lower than the first one and is colored red. The
third column is higher than the second and is colored green;
for the saucer signal to be generated the bar chart should have at least three columns.
Keep in mind, that all Awesome Oscillator columns should be over the nought line for the
saucer signal to be used.
"Nought line crossing" is the signal to buy generated when the bar chart passes from the area
of negative values to that of positive. It comes when the bar chart crosses the nought line. As
regards this signal:
for this signal to be generated, only two columns are necessary;

the first column is to be below the nought line, the second one is to cross it (transition
from a negative value to a positive one);
simultaneous generation of signals to buy and to sell is impossible.
"Two pikes" is the only signal to buy that can be generated when the bar chart values are
below the nought line. As regards this signal, please, bear in mind:
the signal is generated, when you have a pike pointing down (the lowest minimum)
which is below the nought line and is followed by another down-pointing pike which is
somewhat higher (a negative figure with a lesser absolute value, which is therefore closer to
the nought line), than the previous down-looking pike;
the bar chart is to be below the nought line between the two pikes. If the bar chart
crosses the nought line in the section between the pikes, the signal to buy doesnt function.
However, a different signal to buy will be generated nought line crossing;
each new pike of the bar chart is to be higher (a negative number of a lesser absolute
value that is closer to the nought line) than the previous pike;
if an additional higher pike is formed (that is closer to the nought line) and the bar chart
has not crossed the nought line, an additional signal to buy will be generated.
Signals to Sell
Awesome Oscillator signals to sell are identical to the signals to buy. The saucer signal is
reversed and is below zero. Nought line crossing is on the decrease the first column of it is
over the nought, the second one is under it. The two pikes signal is higher than the nought
line and is reversed too.
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Wizard.
Calculation
AO is a 34-period simple moving average, plotted through the central points of the bars
(H+L)/2, and subtracted from the 5-period simple moving average, graphed across the central
points of the bars (H+L)/2.
AO = SMA (MEDIAN PRICE, 5) - SMA (MEDIAN PRICE, 34)
Where:
SMA Simple Moving Average.
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Fractals
All markets are characterized by the fact that on the most part the prices do not change too
much, and only short periods of time (1530 percent) account for trend changes. Most
lucrative periods are usually the case when market prices change according to a certain
trend.
A Fractal is one of five indicators of Bill Williams trading system, which allows to detect the
bottom or the top. Technical definition of the upwards fractal is a series of at least five
successive bars, with the highest HIGH in the middle, and two lower HIGHs on both sides. The
reversing set is a series of at least five successive bars, with the lowest LOW in the middle,
and two higher LOWs on both sides, which correlates to the sell fractal. The fractals have
High and Low values and are indicated with the up and down arrows in a chart.
The Fractal signals need to be filtrated with the use of Alligator. In other words, you should
not close a buy transaction, if the fractal is lower than the Alligators Teeth, and you should
not close a sell transaction, if the fractal is higher than the Alligators Teeth. After the fractal
signal has been created and is in force, which is determined by its position beyond the
Alligators Mouth, it remains a signal until it gets attacked, or until a more recent fractal
signal emerges.
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Gator Oscillator
Gator Oscillator is based on the Alligator and shows the degree of convergence/divergence of
the Balance Lines (Smoothed Moving Average). The top bar chart is the absolute difference
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between the values of the blue and the red lines. The bottom bar chart is the absolute
difference between the values of the red line and the green line, but with the minus sign, as
the bar chart is drawn top-down.
Calculation
ALLIGATORS JAW = SMMA (MEDIAN PRICE, 13, 8)
ALLIGATORS TEETH = SMMA (MEDIAN PRICE, 8, 5)
ALLIGATORS LIPS = SMMA (MEDIAN PRICE, 5, 3)
Where:
SMMA (A, B, C) Smoothed Moving Average. Parameter A smoothed data, B smoothing
period, C shift to future. For example, SMMA (MEDIAN PRICE, 5, 3) means that the smoothed
moving average is taken from the median price, while the smoothing period is equal to 5 bars,
and the shift is equal to 3 bars;
ALLIGATORS JAW Alligator's jaws (blue line);
ALLIGATORS TEETH Alligator's teeth (red line);
ALLIGATORS LIPS Alligator's lips (green line).
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Market Facilitation Index
Market Facilitation Index Technical Indicator (BW MFI) is the indicator which shows the change
of price for one tick. Absolute values of the indicator do not mean anything as they are, only
indicator changes have sense. Bill Williams emphasizes the interchanging of MFI and volume:
Market Facilitation Index increases and volume increases this points out that: a) the
number of players coming into the market increases (volume increases) b) the new coming
players open positions in the direction of bar development, i.e., the movement has begun and
picks up speed.
Market Facilitation Index falls and volume falls. It means the market participants are not
interested anymore.
Market Facilitation Index increases, but the volume falls. It is most likely, that the
market is not supported with the volume from traders, and the price is changing due to
speculations of the floor traders (broker agents and dealers).
Market Facilitation Index falls, but the volume increases. There is a battle between bulls
and bears, characterized by a large sell and buy volume, but the price is not changing
significantly since the forces are equal. One of the contending parties (buyers vs. sellers) will
eventually win the battle. Usually, the break of such a bar lets you know if this bar
determines the continuation of the trend or annuls the trend. Bill Williams calls such bar
"curtsying".
Calculation
To calculate Market Facilitation Index you need to subtract the lowest bar price from the
highest bar price and divide it by the volume.
BW MFI = (HIGH - LOW) / VOLUME
Where:
VOLUME volume of the current bar.
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Macroeconomic Indicators
In addition to technical analysis of charts using different indicators and graphical objects, the
client terminals provides the possibility to analyze macroeconomic indicators. These data are
available on the "Calendar" tab of the "Toolbox" window.
Macroeconomic indicators are certain parameters that describe the state of the country for
which they are calculated. They characterize the level of economic development and indicate
either economic growth or a decline. They are also used for forecasting the price tendency.
This section contains descriptions of the key macroeconomic indicators grouped by countries
in which they are used:
US macroeconomic indicators
EU macroeconomic indicators
UK macroeconomic indicators
Macroeconomic indicators of Japan
Macroeconomic indicators of Germany
Macroeconomic indicators of Switzerland
Macroeconomic indicators of Australia
Macroeconomic indicators of Canada
Macroeconomic indicators of China
Macroeconomic indicators of New Zealand
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Macroeconomic Indicators of USA

Operations with US dollar make up the balk of all transactions in the market, therefore the
list of macroeconomic indicators is very large:
Atlanta Fed Index

Average Hourly Earnings
Average Workweek
Beige Book
Building Permits
Business Inventories
Capacity Utilization
Chicago PMI Index
Construction Spending
Consumer Confidence (CCI)
Consumer Credit
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Consumer Price Index (CPI)

Current Account
Durable Goods Orders
Employment Cost Index
Existing Home Sales
Export Prices
Factory Orders
Federal Budget
Federal Funds Rate
GDP Deflator
Gross Domestic Product (GDP)
Help-Wanted Index
Housing Starts
Import Prices
Industrial Production
ISM Index
Jobless Claims (Initial claims)
Leading Indicators Index
Money Supply
New Home Sales
Non-farm Payrolls
Personal Income
Personal Spending
Philadelphia Fed Index
Producer Price Index (PPI)
Productivity
Real Earnings (Real Average Weekly Earnings)
Redbook
Retail Sales
Trade Balance
Unemployment Rate
Unit Labour Cost
University of Michigan Consumer Confidence Index
Wholesale Inventories
Atlanta Fed Index/Index of manufacturing in states under jurisdiction

of the Atlanta Federal Reserve
This index represents the results of a survey of manufacturers in Atlanta for their attitudes
towards the current economic situation. The figures below "0" are an indication of a slowing
economy. The index has a limited impact on the market, because it is published after the
release of an indicator of business activity at the national level (ISM index). The growing
figures of this index is a favorable factor for the growth of the dollar.
Release Frequency: monthly.

Release Schedule: 09:00 EST, after the 10th of a month.
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Source: Federal Reserve Bank of Atlanta.

Average Hourly Earnings are expressed as absolute values and as an index relative to the
previous period. It is an indicator of potential inflation related with the increase in labor
costs.
It has a significant impact on the market. With expectations of an increase in basic interest
rates, the increase of the index leads to an increase in the rate of dollar.

Release Schedule: 08:30 EST, the first Friday of the month, together with "Non-farm
payrolls".
Source: Bureau of Labor Statistics.
Average Workweek
This indicator shows the average workweek of the month. It has practically no effect on the
market. It is used for long-term analysis of employment in the country. It is a "good" indicator
of the labor market situation at various stages of the economic cycle. It is considered one of
the key indicators for index like Industrial Production and Personal Income whose values are
published later.

Release Schedule: 08:30 EST, the first Friday of the month, together with "Non-farm
payrolls".
Source: Bureau of Labor Statistics
Beige Book
Beige Book is the economic review of the Federal Reserve System. It is prepared by twelve
U.S. Federal Reserve Banks. The review covers the sphere of industrial production, services,
agriculture, financial institutions, labor market and real estate market.
It has a limited impact on the market. When rumors about possible change of interest rates
appear on the market, attention is paid to the review part connected with the state of wages
and prices. The review is useful from the viewpoint of confirmation of the trend that has
already established in the economy.
Release Frequency: eight times a year.
Release Schedule: 14:00 EST, on Wednesdays, two weeks before the next meeting of the
Federal Open Market Committee (FOMC)
Source: Federal Reserve.
Building Permits
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The indicator shows the number of issued permits for the construction of new homes. The
indicator is very sensitive to changes in key interest rates, since the construction require bank
loans. These data are subject to seasonal fluctuations due to the character of the real estate
market. Building is directly connected with the income of the population. Therefore, the
increase in construction characterizes the improved well-being and healthy development of
the economy.
It has a limited impact on the market. Growth of this value has a positive impact on the
currency.

Release Schedule: 08:30 EST, third week of the month, together with "Housing starts".
Source: U.S. Census Bureau, U.S. Department of Housing and Urban Development (HUD).
Business Inventories
There is the following regularity: an increase in inventories for several months may indicate
stagnation in the economy. It rarely affects the market. However, a steady trend in its
dynamics has a great impact on the market. Growth of the index has a negative impact on the
dollar.
Release Schedule: 08:30 EST, in the middle of the month.
Source: U.S. Census Bureau.
This indicator determines the degree of utilization of productive capacity of the country's
economy. The level of 85% indicates a good balance between economic growth and inflation.
Figures above this level cause inflation in the economy.
It has a limited impact on the market. The growth of this index leads to growth of the
national currency.

Release Schedule: 09:15 EST, in the middle of the month, together with Industrial
Production Index.
Chicago PMI Index

Chicago PMI Index is based on surveys of purchasing managers in Chicago. This index includes
the status of production orders, the prices of manufactured products and inventories in
warehouses. Figures below the 45-50 indicate a slowing economy.
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The indicator is carefully watched, because it is published shortly before the release of ISM
Index. It has a significant impact on the market because it can give an idea of what the ISM
Index will be. Growth of the index leads to the growth of the dollar.

Release Schedule: 10:00 EST, the last business day of the month.
Source: the Purchasing Managers Association of Chicago.
Construction Spending
The indicator is expressed as an index relative to the previous period as an absolute value of
costs. The indicator is very sensitive to changes in key interest rates, since the construction
require bank loans. These data are subject to seasonal fluctuations due to the character of
the real estate market. Building is directly connected with the income of the population.
Therefore, the increase in construction characterizes the improved well-being and healthy
development of the economy.
currency.
Release Schedule: 10:00 EST, the first business day of the month.
Source: The Census Bureau of the Department of Commerce.
Consumer Confidence (CCI)
This index is an attempt to measure consumer optimism. It is calculated since 1967. Its base
value is 100. The index is calculated based on the monthly survey of 5,000 families for a
number of questions:
family's financial situation as compared to the previous period;
The expected financial situation of the family during the year;
assessment of business conditions in the economy during the year;
estimate of the expected unemployment and economic recession;
assessment of home shopping (clothes, furniture, etc.);
The index has a moderate impact on the market because it can fail to reflect the real state of
the economy. However, it is traditionally used for predicting trends in employment and the
general state of the economy. Growth of the index is a good factor for the national economy
and leads to the growth of the dollar.
Release Schedule: 10:00 EST, after the 20th of each month.
Source: the NY-based Conference Board.
Consumer Credit
The indicator reflects the extent of American system of credits through credit cards, personal
loans and hire purchase. It is an indicator of consumer demand. Importance of this indicator
suggests that consumers are not afraid of taking loans to meet their material needs. However,
the figures are often revised, and have significant seasonal variations. For example, consumer
credit is growing in anticipation of Christmas and New Year.
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It has a limited impact on the market. Growth of the index is a good factor for the national
economy and leads to the growth of the dollar.
Release Schedule: 15:00 EST, 7th of the month.

CPI defines the change in retail prices for a basket of goods and services. CPI is considered
more reliable if it does not take into account food and energy industries. When calculating
this index prices for imported goods and services are taken into account. Consumer Price
Index is the main indicator of inflation in the country.
This index should be analyzed together with PPI (Producer Price Index). If the economy
develops in normal conditions, the increase in CPI and PPI can lead to an increase in key
interest rates in the country. This, in turn, leads to growth of the dollar because of the
increasing attractiveness of investing in currencies with higher interest rates.

Source: Bureau of Labor Statistics, U.S. Department of Labor.
Current Account
The Current Account Balance is the ratio between the amount of payments into and out of the
country. If payments into the country exceed payments to other countries and international
organizations, the balance of payments is active (surplus), if on the contrary, it is passive
(negative balance). The surplus (or decrease in the deficit) is a favorable factor for the
growth of the national currency. It has a limited impact on the market.
Release Frequency: quarterly.
Release Schedule: 10:00 EST, the middle of the month.
Durable Goods Orders

Durable Goods Orders (DGO) is an indicator of orders placed for relatively long lasting goods.
Durable goods are expected to last more than three years, e.g.: cars, furniture, appliances,
etc.
This indicator is important for the market because it gives an idea of the consumers'
confidence in the current economic situation. Since durable goods are expensive, the increase
in the number of orders for them shows the willingness of consumers to spend their money on
them. Thus, the growth of this indicator is a positive factor for economic development and
leads to growth of the national currency.
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Release Schedule: 08:30 EST, the fourth week.

Source: U.S. Census Bureau of the Department of Commerce.
Employment Cost Index

Employment Cost Index consists of wages and unemployment benefits. It can serve as an
indicator of the presence of inflationary processes in the economy. Employment Cost Index is
one of the indicators which is closely observed by the Federal Reserve when determining its
monetary policy (which is saying a lot).
With expectations of an increase in basic interest rates, the increase of the index leads to an
increase in the rate of dollar. It is used for medium-and long-term forecasts.
Release Schedule: 08:30 EST, after the 20th of the month of release.
Existing Home Sales

It measures sales of previously owned homes. May give an idea about the optimism of
consumers (consumer confidence) and their ability to buy expensive things. These data are
subject to seasonal fluctuations due to the character of the real estate market. Building is
directly connected with the income of the population. Therefore, the increase in construction
characterizes the improved well-being and healthy development of the economy.
currency.
Release Schedule: 10:00 EST, after the 20th of the month.
Source: National Association of Realtors.
Export Prices
The indicator reflects the change in export prices for a month. It is an indicator of inflation. It
has a limited impact on the market. With expectations of an increase in basic interest rates,
the increase of the index leads to an increase in the rate of dollar.

Release Schedule: 08:30 EST, about the 10th of each month, along with "Import prices".
Factory Orders
This indicator shows the industry's need for durable goods and non-durables. Factory orders
include orders for durable goods (more than 50% of all orders) and non-durables. Nondurable
goods include food, clothing, light industry goods and products designed to operate with
durable goods. Durable goods are expected to last more than three years. They include cars,
furniture, etc.
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Release Schedule: 10:00 EST, first days of a month.
Federal Budget
This indicator describes the ratio between income and expenditures of the US. When income
exceeds expenditures a surplus occurs. When expenditures exceed income a negative balance
(deficit) occurs.
It has little impact on the market. Usually it is used for long-term economic analysis. Budget
deficit is considered in the context of other indicators: Producer Price Index, Consumer Price
Index, Money Supply (M1, M2, M3), etc.

Source: Congressional Budget Office.
Federal Funds Rate

Federal Funds Rate is the interest rate, which is used in transactions between banks members of the Federal Reserve System. The Federal Funds Rate is regulated by the
Committee on Open Market.
High interest rates reduce the growth of consumer lending and stimulate the growth of
savings, which leads to slower economic growth. The growth of rates usually leads to an
increase in capital inflows and the growth of the national currency in the medium term,
however, if growth rates are not based on high rates of economic growth, it could lead to
economic stagnation and negative impact on the currency markets in the long term.
Release Schedule: 14:15 EST, usually on Tuesdays.
GDP Deflator
This is the ratio of the current value of GDP (in current prices) to its base value (in the prices
of the base period). It reflects the inflationary component in the value of GDP. It is published
simultaneously with the GDP. It has a significant impact on the market. With expectations of
an increase in basic interest rates, the increase of the index leads to an increase in the rate
of dollar.

188
Gross domestic product (GDP) is the market cost of goods and services produced within a
certain period, regardless of the ethnicity of used factors of production. Income of U.S.
citizens and corporations received from abroad are not taken into account for index
calculation.
GDP is a key indicator of the country's economic activity. Its main components are consumer
spending, investment, net exports of goods and services, and government spendings.
GDP growth is accompanied by the rise of the economy and the dollar tends to strengthen.
Release Frequency: quarterly, divided into three values advance, revised and final.
Release Schedule: 8:30 EST, the third or fourth week of the month following the
reporting period.
Help-Wanted Index
Help-Wanted Index characterizes the volume of published advertisements in newspapers on
hiring employees. 1987 is considered as the base, it's value is "100". When analyzing the
figure moving averages are used. If the moving average shows the index trend change over
several months, it can be a sign of the changing situation on the labor market. Also, the index
can give an idea about a possible change of the economic situation in different regions of the
country.
It has almost no effect on the market. The influence of the index is limited, because only a
limited number of major regional newspapers is taken into account.

Release Schedule: 10:00 EST, last Thursday of the month.
Source: Conference Board.
Housing Starts
The indicator gages the number of new houses. The indicator is very sensitive to changes in
key interest rates, since the construction require bank loans. These data are subject to
seasonal fluctuations due to the character of the real estate market. Building is directly
connected with the income of the population. Therefore, the increase in construction
characterizes the improved well-being and healthy development of the economy.
currency.

Release Schedule: 08:30 EST, the third week of the month, along with Building permits.
Source: U.S. Census Bureau, U.S. Department of Housing and Urban Development (HUD).
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Import Prices
The index reflects the change in import prices for a month. It is an indicator of inflation.
Since for calculatingCPI prices for imported goods and services are taken into account, this
indicator describes the contribution of import prices in the overall picture of changes in retail
prices of the consumer basket.
It has a limited impact on the market. With expectations of an increase in basic interest

Release Schedule: 08:30 EST, about the 10th of each month, along with "Export Prices".
The index of Industrial Production is one of the main indicators reflecting the state of the
national economy. This index measures the change in industrial production and public services
in the country.
It has a significant impact on the market. Production growth leads to growth of the national
currency.
Release Schedule: 09:15 EST, the middle of the month.
ISM Index
ISM Index (Institute of Supply Management's index, former NAPM National Association of
Purchasing Managers) is the index of business activity.
ISM figures above 50 are usually considered as an indicator of expansion, while values below
50 indicate contraction. Typically, when ISM approaches 60 investors begin to worry about
possible economic overheating, inflation increase and the corresponding measures (raising
rates) by the Federal Reserve Bank. Figures below 40 entail talks about recession.
ISM is released just before unemployment data are announced, and is often used to refine
data by Bureau of Labor Statistics.
Release Schedule: 10:00 EST, the first business day of the month.
Source: Institute for Supply Management.
Jobless Claims (Initial Claims)

There are two types of Jobless Claims - Initial Claims, when a person applies for a benefit for
the first time in five years, and the total number. Initial claims are more important. Both
figures show weekly changes in the number of jobless claims.
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These figures do not always reflect the real state of events. They are sometimes distorted by
short-term factors, such as federal or local holidays. This indicator can give an idea of what
Non-farm payrolls will be next time. For example, if during a month the value of Jobless
Claims consistently decreases, then it is likely that the value of Non-farm payrolls will be
large. It has a limited impact on the market. Reducing of the number of jobless claims is a
favorable factor for the growth of the dollar.
Release Frequency: weekly.
Release Schedule: 08:30 EST, every Thursday.
Source: U.S. Department of Labor.
Leading Indicators Index

Leading Indicators Index is a weighted average of the following measures: Production
Orders, Jobless Claims,Money Supply, Average Workweek, Building Permits, prices of main
stocks, Durable Goods Orders, Consumer Confidence. It is believed that this measure
characterizes the development of the economy over the next 6 months.
There is also a rule of thumb: value of the indicator in the negative region for three
consecutive months is an indicator of a slowdown of the economy. It has a limited impact on
the market. Its limited impact is due to the fact that the value of the index is released a
month after the reporting period, when virtually all the major indexes have been published.
Growth of the index leads to the growth of the dollar.

Release Schedule: 10:00 EST, at the beginning of the month.
Source: the NY-based Conference Board.
Money Supply
Money Supply is the measure of the country's money stock. M1 includes the most liquid
resources: cash money in circulation, demand deposits, traveler's checks. M2 includes M1,
time deposits (up to $100,000) and other high-liquidity savings. M3 includes M2 and large time
deposits.
Figures of M1, M2 and M3 are informative. They show the weekly change in the money supply.
The most significant of them is M2. They have practically no effect on the market.
Release Schedule: 16:30 EST, on Thursdays.
New Home Sales

This indicator measures sales of new houses for a year. This number tends to grow when the
rate on loans secured by real estate, which is associated with the basic interest rates in the
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country, is growing. These data are subject to seasonal fluctuations due to the character of
the real estate market. When analyzing the figure moving averages are used.
currency.

Release Schedule: 10:00 EST, first days of a month.
Non-farm Payrolls
Non-farm Payrolls is the assessment of the total number of employees recorded in payrolls.
This is a very strong indicator that shows the change in employment in the country. The
growth of this indicator characterizes the increase in employment and leads to the growth of
the dollar. It is considered an indicator tending to move the market. There is a rule of thumb
that an increase in its value by 200,000 per month equates to an increase in GDP by 3.0%.
Release Schedule: 08:30 EST, the first Friday of the month.
Personal Income
This index contains employees' wages, rental income, dividends, social security payments,
etc. It is reviewed together with Personal Spending.
It has a limited impact on the market. Change of this index characterizes the state of people's
purchasing power. Growth of the index with a normal level of spendings may lead to increase
of retail sales, which is a good factor for the national economy and leads to the growth of the
dollar.

Source: Bureau of Economic Analysis.
Personal Spending
The index reflects the change in spending for meeting personal needs. The index includes
three components: spendings on durable goods, on nondurables and services. Retail Sales
Index shows the consumption of durable and nondurable goods. The process of service
consumption, in turn, changes with a relatively constant rate, so the value of this indicator is
often predictable. Thus, only the significant deviation of this index from predicted values may
influence the rate of national currency.
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Release Schedule: 08:30 EST, 20th of the month, along with Personal Income.
Source: Bureau of Economic Analysis.
Philadelphia Fed Index

Philadelphia Fed Index is based on the results of survey questioning manufacturers in
Philadelphia on their attitude towards the current economic situation. The figures below "0"
are an indication of a slowing economy.
This index has a limited impact on the market. This index is being carefully watched, because
it is published prior to ISM Index and can give an idea of what it will be. Growth of the index
leads to the growth of the dollar.

Release Schedule: 10:00 EST, the third Thursday of the month.
Source: Federal Reserve Bank of Philadelphia.
Producer Price Index

PPI measures changes in the price of the consumer basket produced in the industry. This index
consists of two parts: the input prices (semi-finished products, components, etc.) and output
prices (finished goods). The output price includes labor costs and gives an insight into
inflation associated with changes in labor cost. PPI is considered more reliable if it does not
take into account food and energy industries. When calculating this index prices for imported
goods and services are not taken into account.

Release Schedule: 08:30 EST, the following week after the release of Non-farm payrolls.
Productivity
The productivity index measures the output produced for each hour of labor worked. This
indicator is useful for predicting inflation and output growth. If the cost of labor increases
respective to the increase of productivity, and, moreover, if the increase in production costs
is unlikely, then it will not cause inflation.
It has a significant impact on the market. However it should be watched carefully because it
may be misleading from time to time. For example, a reduction in the number of people
employed in manufacturing during the economy stagnation leads to increased productivity.
This may also occur due to strikes. Growth of the index is a good factor for the national
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Real Earnings (Real average weekly earnings)

The index is calculated taking into account inflation. To eliminate its influence calculation is
made with respect to the base year 1982. It is expressed as absolute values and as an index
relative to the previous period. It can serve as an indicator of inflationary pressures arising
from increased labor costs.
It has a limited impact on the market. With expectations of an increase in basic interest

Release Schedule: 08:30 EST, in the middle of the month, along with Consumer Price
Index.
Redbook
Redbook review is the result of study of retail sales of large supermarkets. Published weekly
on Tuesdays. The first review of the month (the first Tuesday of the month) compares the first
week of this month with the first week of the previous month, the second review compares
the first two weeks of this month with the first two weeks of the previous month, etc. Thus, a
complete picture of the review is formed only in the last review of the month (last Tuesday).
It has almost no effect on the market. This is because the figures show considerable
variability of values and the review concerns a limited number of stores.
Release Schedule: 10:30 EST, on Tuesdays.
Source: Redbook Research.
Retail Sales
The index shows the change in volume of sales in the retail trade. It characterizes consumer
spending and demand. In the results of retail sales, the share of durable goods (from cars to
household goods) is about 1/3 of consumer spending, and about 2/3 is the share of
nondurables.
Growth of the index is a good factor for the national economy and leads to the growth of the
dollar. It has a limited impact on the market (mainly in the medium and long term).
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Trade Balance
Trade Balance is the difference between the total value of exports and the total value of
imports. This indicator is a part of the Current Account. A positive trade balance shows the
demand of goods of the country on the international market, as well as the fact that the
country does not consume all that it produces. A negative trade balance suggests that the
country consumes foreign goods together with it own goods.
When the U.S. trade deficit decreases due to increase of exports, the demand of U.S. dollars
increases which stimulates the growth of the American currency.

Release Schedule: 08:30 EST, Tuesday/Thursday of the third week of the month.
Unemployment Rate
Unemployment rate is the number of unemployed persons in relation to the working-age
population. It is released simultaneously with Non-farm payrolls. Typically, analysis of
unemployment is carried out in the context of the figures reflecting the value of Non-farm
payrolls. For example, the growth of Non-farm payrolls with an increase in the unemployment
rate indicates an increase in unemployment in the agricultural sectors of the economy, etc.
rates, the decrease of the index leads to an increase in the rate of dollar.

Release Schedule: 08:30 EST, the first Friday of the month.
Unit Labor Cost

The index characterizes costs associated with the manufacturing of a production unit. It is an
important indicator of the efficiency of the economy. It is a good indicator of inflationary
pressures associated with increasing wages. Typically, the analysis of this index is carried out
in the context of the figures reflecting the valueProductivity.
It has a significant impact on the market. The growth of the Unit Labor Cost together with
rising Productivity can lead to the need to raise key interest rates, which is a positive factor
for growth of the dollar.
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Release Schedule: 08:30 EST, 10th of the month along with "Productivity".
University of Michigan Consumer Confidence Index

University of Michigan Consumer Confidence Index is the survey of consumers' confidence in
the current economic situation. The survey is conducted by the University of Michigan USA. It
analyzes the desire of consumers to spend their money. The index is a leading indicator of
consumer sentiment.
It has a limited impact on the market. Growth of the index leads to the growth of the dollar.
Release Frequency: twice a month.
Release Schedule: 10:00 EST, the second week of the month (preliminary) and in two
weeks (final).
Source: University of Michigan.
This index characterizes the relationships between wholesalers and retailers. It has a limited
impact on the market, but gives an idea of trends in these sectors, which can be projected on
the economy as a whole. Large amounts of goods in warehouses may indicate the presence of
stagnation in the economy. A steady trend in its dynamics has a great impact on the market.
Growth of the index has a negative impact on the dollar.
Release Schedule: 10:00 EST, about 10th of each month.
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Macroeconomic Indicators of European Union

To assess the situation in the European Union, the following macroeconomic indicators are
used:
Balance of Payments
Capital and Financial Account
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Consumer Confidence Indicator (CCI)

Current Account
Economic Sentiment Indicator
Harmonized Index of Consumer Price (HICP)
IFO Business Climate
Industrial Confidence Indicator
Labor Cost Index
Money Supply Growth
PMI Manufacturing
PMI Services
Purchasing Managers Index (PMI)
Refinancing Tender Rate
Retail Trade Confidence Indicator
Unemployment Rate
ZEW Survey
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Balance of Payments
This important indicator used to describe the financial state of the country represents the
sum of all incoming and outgoing payments of the country during a specified period. In the
case of the EU, also a separate balance for the Eurozone is calculated, which is approved by
the European Central Bank. The ECB also collects data, and its balance of payments for the
Eurozone may be different from the balance of Eurostat, as data from the countries members of the Union are collected by the Bank and Eurostat at different times. The Balance
of Payments is divided into two sub-accounts:
Current Account;
Capital and Financial Account.
Both for the entire balance and for its separate parts the negative balance and its increase
have a bad impact on the national currency.

Release Schedule: 9:00 GMT, about 50 days after the reporting month.
Source: Eurostat.
Capital and Financial Account

This indicator is a part of the Balance of Payments. The Capital and Financial Account is the
ratio of the movement of public and private funds into and out of a country, received and
issued credits and results of transactions on government reserves.
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Source: Eurostat.
Consumer Confidence Indicator (CCI)

The index is the average of the balance of answers to four questions: evaluating the financial
state of the family household, evaluating the general economic situation in the country in the
past and opinion about its future, the acceptability of making large purchases at the moment.
The survey is carried out in all segments of the population. Only unambiguous answers are
allowed: "yes no", "bad good". The final figure is the difference between positive and
negative responses. Thus, the value above zero indicates a greater number of positive
responses.
Release of this index should be watched, but as a rule it rarely affects markets.
Release Schedule: 09:00 GMT, the last week of the month.
Source: European Commission, Directorate General for Economic and Financial Affairs.
Current Account
This indicator is a part of the Balance of Payments. Current account balance is the export of
goods and services by business entities of the country minus import of goods and services plus
net investment income plus balance of transfer payments (payments not related to the
movement of capital, i.e. loans, purchases of securities, salaries, etc. ). In other words, the
balance of payments is the ratio between the amount of payments received from abroad, and
the amount of payments moving abroad. The balance can be either positive or negative.
The indicator is similar to the English PSNCR. It has little impact on the market.

Source: Eurostat.
Economic Sentiment Indicator

This indicator is the most important one in terms of assessing the prospects for economic
growth. It is a composite indicator with complicated calculations. Its value is equally
influenced by the Industrial Confidence Indicator and Consumer Confidence Indicator. In
addition, construction confidence index and stock prices index are used for calculating; their
influence is reduced due to the use of reduction factors.
As an integral indicator for the majority of survey of indexes, it has a big impact on financial
markets, and from this point of view it is the main survey index. High or rising values of the
index indicates a healthy level of purchases, business expenses and investments which
positively affects the economic situation and leads to strengthening of the euro.
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GDP is considered in the three independent components:

GDP as the sum in money for all goods and services produced by business entities, plus
taxes, minus subsidies on production of certain goods and services.
GDP as the amount of funds spent on consumption of goods and services produced, plus
export, minus import of goods and services.
GDP as the amount of the revenue the economy as a whole (i.e. salaries, taxes, balance
profit of businesses, etc. ).
After obtaining the data on these parameters and checking their balance, the value of GDP is
obtained, which is included in the official documents.
It is important to track GDP. Its growth relates to the factors that contribute to strengthening
of the national currency, but despite its importance, they rarely have a strong impact on
foreign exchange markets.
Release Schedule: 9:00 GMT, about two months after the quarter.
Source: Eurostat.
Harmonized Index of Consumer Price (HICP)

The indicator is taken into account by the market. During the cycle of interest rates growth,
the index gains more importance, since its growth entails further tightening of monetary
policy in the country, and therefore entails the growth of the national currency. Indices of
consumer price inflation are more important than the index of industrial inflation.
To compare the values of indexes for different periods, the index value for the base year 1996
equal to 100 is used.
Release Schedule: 09:00 GMT, about three weeks after the end of the reporting period.
Source: Eurostat.
IFO Business Climate

This survey is one of the key indicators of country's business sentiment. The survey is
conducted monthly, querying German firms on the current German business climate as well as
their expectations for the next six months. As the largest economy in the Euro-zone, Germany
is responsible for approximately a quarter of the total Euro-Zone GDP. Consequently, the
German IFO is a significant economic health indicator for the Euro-zone as a whole.
The figures below 100 are an indicator of a slowing down economy, and is clearly regarded by
the market as a negative factor. Values above 100 indicate growing optimism, which in turn
causes the strengthening of the Euro.
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The survey presents two equally weighted sub-indices: Current Assessment and Business
Expectations.
Source: CESifo Group.
Industrial Confidence Indicator

This index is calculated similarly to Consumer Confidence Index. Heads of industrial
enterprises evaluates the production prospects in general, as well as the prospects of orders
growth and growth of shares of industrial firms.

Labor Cost Index

This index is the sum of all payments made to the working population, divided by the number
of employees and hours worked. It is calculated without taking into account employees in
agriculture, health and education.
In addition to reflecting the income situation of employees, the index reflects the prospects
for inflation. Increased labor costs are considered as an indicator of impending inflation,
which could raise interest rates. Index changes have little effect on the euro.
Release Schedule: 09:00 GMT, in the middle of the third month after the reporting
quarter.
Source: Eurostat.
Money Supply Growth
In European statistics agencies, money supply is divided into aggregates M1, M2 and M3, each
of them is measured on a monthly basis.
M1 consists of cash in circulation and deposits with very little urgency from which the
money can almost instantly be used as a means of payment. These are overnight deposits.
M2 consists of all the components of M1 together with deposits up to two years and
revocable deposits up to three months.
M3 consists of all the components of M2 together with repo trades, securities and debt
securities of up to two years.
The biggest attention when deciding on monetary policy is given to aggregate M3 based on
which the European Central Bank sets the inflation target.
Release Schedule: 9:00 GMT.
Source: Eurostat, the European Central Bank.
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PMI Manufacturing
This index assesses business conditions in the manufacturing sector. Because the
manufacturing sector represents nearly a quarter of the total Eurozone GDP, the Eurozone PMI
Manufacturing is a significant and timely indicator of business conditions and the general
health of the economy.
The indicator values about 50 points indicate that during the reporting period there was
neither extension no reduction of the manufacturing sector. Values above 50 indicate growth
in this sector. Figures below 50 may indicate deterioration in the manufacturing sector.
Release Schedule: 09:00 GMT, the first working day of the month.
Source: NTC Research.
PMI Services
This index reflects the business optimism in the service sector. The indicator is calculated
based on interviewing of executives in Germany, France, Ireland, Italy and Spain. Together,
these countries account for about 4/5 of all activity in the service sector of Eurozone.
neither extension no reduction of the service sector. Values above 50 indicate growth in this
sector. Figures below 50 may indicate deterioration in the service sector.
Because 2/3 of GDP is created in the service sector, PMI Services is an important and timely
indicator of health of economy. The index has a significant impact on the market.
Release Schedule: 09:00 GMT, the third working day of the month.

The index is based on a survey of a large number of participants who answer questions like
"Have the conditions improved for your business in terms of new orders, prices, labor market,
the timing of orders, etc.?", while the respondent selects one of the three types of response:
"No", "Yes" or "Not changed". Such indexes very effectively monitor the dynamics of the
economic cycle being leading indicators.
When the index starts to fall after a period of growth, this predicts the transition of the
business cycle from the growth stage to decline, while its turn upwards after the fall predicts
the beginning of recovery.
neither extension no reduction of the manufacturing sector. Values above 50 indicate growth
in this sector. Figures below 50 may indicate deterioration in the industry.
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The index has a significant impact on the market.

Refinancing Tender Rate

Refinancing Tender Rate is the possibly least interest rate for funds attracting claims in the
tender of the European Central Bank. Every two weeks the ECB holds a tender for funds
investment, which is necessary for liquidity support in money system.
Release Schedule: 11:45 GMT, usually on the first Thursday of the month.
Source: The European Central Bank.
Retail Trade Confidence Indicator

This index is calculated similarly to Consumer Confidence Index. Owners of retail businesses
answer questions about the trading situation at the moment and estimate prospects for the
future.

Unemployment Rate
The unemployment rate is the percentage of working-age population who are actively looking
for a job but can't find it. A low or falling unemployment rate is associated with increased
expenditure, given that more people are employed and have incoming wages.
This is a significant indicator of economic activity in a region, particularly because it is
released earlier than theGDP. However, it receives less attention, because the corresponding
figures for member countries are released before the aggregate rate for the Eurozone.

Release Schedule: 09:00 GMT, two months after the reporting period, the first week of
the month.
Source: Eurostat.
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A German firm, the Center for European Economic Research (ZEW), queries financial experts
throughout Europe every month in order to make a medium-term forecast about Eurozone's
economic situation. The results are calculation of the difference between positive and
negative reviews.
There are two types of the indicator:

ZEW Economic Expectations Index this indicator is made up of assessments of
expected events the direction of inflation, interest rates and exchange rates over the next
six months.
Zew Current Situation in contrast to the previous indicator, it assesses the current
economic situation. Experts are invited to select one of the variants: "better", "worse" or
"unchanged." The final figure is the difference between positive and negative rates.
High figures indicate a positive economic environment and good business climate in the
Eurozone.
Release Schedule: 09:00 GMT, the first half of the month.
Source: Center for European Economic Research.
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Macroeconomic Indicators of United Kingdom

To assess the situation in the UK, the following macroeconomic indicators are used:
Average Earning Growth

Balance of Payments
Bank of England Minutes
CBI Distributive Trades
CBI Industrial Order Expectations
CBI Industrial Trends
Current Account
Industrial Output (Industrial Production)
M4 Money Supply
Major Banks Mortgage Approvals
Manufacturing Output
Net Consumer Credit
Non-Eu Trade Balance
Producer Input Prices (PPI Input)
Producer Output Prices (PPI Output)
Public Sector Net Cash Requirement (PSNCR)
Repo Rate
Retail Price Index
Retail Sales
Rightmove HPI
Unemployment (Claimant Count Rate)
Unit Wage Costs
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Average Earning Growth
The indicator is calculated by taking into account earnings growth over the past three months
(taking into account all payments that were actually made). This is a good indicator of future
inflation, as rising wages, if they are not offset by productivity growth, are the cause of rising
prices. It is one of the defining indicators, according to which the Bank of England determines
interest rates. It has a significant impact on the market.
Source: U.K. Office of National Statistics.
Balance of Payments
It represents an overall picture of financial flows between the UK and the rest of the world.
This parameter consists of a large number of components that take into account all types of
cash flows to and from the country. In fact, it is the difference between all cash that entered
and left it.
Growth of the balance of payments deficits affects the rate of the national currency, because
it means the outflow of funds, i.e. reduce of foreign investment, falling confidence in the
country, etc.
Release Schedule: 09:30 GMT, at the end of the month following the reporting quarter.
Bank of England Minutes

The Bank of England Monetary Policy Committee keeps notes from its rate decision meetings.
The detailed minutes from these meetings give an insight into the process of monetary policy
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decision making and the opinion of the Bank of England on economic developments inside and
outside the country.
The markets tend to focus most of their attention on the key points discussed that can affect
future interest rate changes.
Because minutes come out two weeks after the Bank of England meets, the market does not
take into account some information from the report. Market participants tend to track the
overall mood of the Bank of England during the meeting. If the Bank is cautious about the
inflationary outlook (the mood is called "Hawkish"), then the market expects future rate
increases. If the Bank is optimistic ("Dovish") it suggests to markets that inflation is in check
and that future rate increases are less likely.

Release Schedule: 2 weeks after announcement of rates, usually on Wednesday.
Source: The Bank of England.
CBI Distributive Trades
The review (in the form of figures) reflects business sentiment on trade areas. The review
does not have direct connection with the real prospects of economic development. The
indicator is taken into account by the market.
Release Schedule: 11:00 GMT, 28-30th of the reporting month.
Source: CBI.
CBI Industrial Order Expectations

This index characterizes the volume of new orders in the industrial sector. The growth of
industrial orders is a sign that the economy expands. Increase in orders leads to higher
employment in the industry.
Increase in orders will lead to further growth in manufacturing, and hence lead to growth of
the national currency and domestic stock market. In the bond market, this leads to an
increase in profitability of government securities. The index is certainly important for the
market. Sometimes a strong deviation from the forecast values of the index can cause a
strong change of the pound sterling rate. Certainly, the indicator is not able to deploy the
prevailing trend.
Source: CBI.
CBI Industrial Trends

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The review (in the form of figures) reflects business sentiment on the production sector of the
economy. The review does not have direct connection with the real prospects of economic
development. It is released monthly. The indicator is taken into account by the market.
Release Schedule: 11:00 GMT, 22-27th of the reporting period.
Source: CBI.
Current Account
This is the most important part of the Balance of Payments. It consists of:
trade balance for goods and services (the sum of export and import flows);
balance of income of compensatory payments to employees;
balance of income from direct investment abroad and investment from abroad;
balance of income from portfolio investment in securities and debt obligations;
balance of payments of the government for taxes from non-residents operating in
England, pension and social benefits to its citizens living abroad, and payments to
international organizations.
Changes of this indicator have impact on financial markets. Increase in the deficit on Current
Account Balance is negative news for the currency.

Release Schedule: 09:30 GMT, at the end of the month following the reporting quarter.
Gross domestic product (GDP) is the sum of domestically produced goods and services
expressed in prices. It is a major indicator reflecting the state of the national economy. GDP
is calculated in the following way: GDP = C + I + S + E - M, where C consumption, I
investment, S state government expenditures, E export, M import. GDP is expressed as
an index relative to the previous period, and as an absolute value of the sum of prices for
manufactured goods and services. Despite the importance of the indicator, its impact on the
market is decreasing, because its value is usually predicted by the market based on other
data, and also due to repeated revisions of the value of GDP after its first release.
Release Frequency: quarterly, divided into three values advance, revised and final.
Release Schedule: 09:30 GMT, during three months after accounting quarter.
Industrial Output (Industrial Production)

It includes the output of the manufacturing sector (manufacturing output), and also takes into
account manufacturing in sectors such like mining and processing of minerals, and utilities. It
is an indicator of economic growth.
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High or rising figures indicate the economic development and strengthening of the Pound.
However, the uncontrolled level of production and consumption can lead to inflation. In the
case of inflation, the Bank of England can raise interest rates to control growth.
The indicator is not decisive for the direction of economic development, as more than 60% of
the gross domestic product is currently provided by the service sector. It is taken into account
by the market.

Release Schedule: 09:30 GMT, 5-9th of the month following the reporting period.
M4 Money Supply
Indicator of M4 Money Supply. More often Money Supply Growth is used. It includes all
currency in circulation, the total amount of loans issued by banks, as well as the amount of
borrowing by the government. M4 is considered a good indicator for inflation.
Release Schedule: 09:30 GMT, next month after the reporting period, 19-21 provisional
data are published, in a week - final figures are released.
Major Banks Mortgage Approvals
Taking into account that the state of the UK property market is always in the focus of traders
of British currency, the importance of this index is very high. Amount of mortgage approvals
will result in the growth of loans and homes sold. Therefore, the indicator can be regarded as
a leading indicator of the housing market, in addition the index also characterizes the lending
sector.
Manufacturing Output
This indicator shows the volume of products produced by the manufacturing industry as
expressed in prices. It is an indicator of economic growth. The indicator is not very important
for the market, because the contribution of manufacturing in gross domestic product is less
than 20%. It is released monthly.
Net Consumer Credit

The amount of loans granted to individuals over the last month. A large value of the indicator
can talk about "overheating" of the economy, when consumers take more credits than it is
necessary for normal living. A too high level of credits can lead to a recession in the long term
210
if the consumer is too burdened by the loan and will have to reduce consumption or to leave
the debt to a financier in case of bankruptcy.
It has a limited impact on the market.

Non-Eu Trade Balance
Non-Eu Trade Balance is the difference between exports and imports, expressed in prices. The
index is gradually losing its influence on the market because of the the growing importance of
capital flows, rather than goods. At the same time, import growth indicates an increase in
consumption in the country, and export growth is a sign of an increased level of production.
The Non-EU Trade Balance is calculated separately for the UK. Reducing trade deficit (an
increase in the surplus of exports over imports) leads to higher prices of the credit market
instruments, appreciating currencies and rising prices of shares.
Release Schedule: 09:30 GMT, 18-20 of the month following the reporting period.
The indicator reflects the change in the rate of industrial production. Figures above 50%
reflect growth of rates of industrial production, below 50% - slowing down. The indicator is
taken into account by the market.
Release Schedule: 09:30 GMT, the first business day of the month following the
reporting period.
Source: Chartered Institute of Purchasing and Supply.
This indicator is defined as the change in the prices of components and semifinished products
in the industry (the growing "input" prices may have no influence on the inflation index, as
there can be reduction of costs in the production process). It is a string indicator of inflation.
From the total value of the indicator, usually a part is singled out which does not take into
account the price of food, alcohol, tobacco and fuel (prices for these commodities are highly
volatile). The indicator is taken into account by the market.
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This indicator is defined as the change in the level of manufacturer's selling prices in the
industry. It is a string indicator of inflation. It reflects the inflationary pressures on the
economy from producers (increase of output prices may have no influence on the inflation
index, as it can reduce costs in trading). From the total value of the indicator, usually a part
is singled out which does not take into account the price of food, alcohol, tobacco and fuel
(prices for these commodities are highly volatile). It has a significant impact on the market.
Public Sector Net Cash Requirement (PSNCR)

The need of the public (including governmental) sector of economy in cash. PSNCR is used for
determining the overall situation with the finances in England and is a sum of money that
need to be borrowed by the public sector from other sectors of the economy and foreign
sources to cover the gap between incomes and expenses, resulting from the activities of the
public sector.
It includes a budget deficit, i.e. the difference between the budget income and expenditure.
Large budget deficit leads to an increase in public debt and can act as a catalyst for
accelerating inflation. It results either from large spendings or from low income of the
budget.
Repo Rate
Repo Rate is the interest rate for short-term loans secured by securities issued by the Bank of
England. This is the major rate in the UK. The Bank of England has set an upper threshold of
inflation at 2%; if consumer prices are rising faster than 2%, then increase of rates is high
probable.
Release Schedule: 11:00 GMT, 4-10 of the month, on Thursday.
Retail Price Index

The report tracks changes in the price of a basket of goods and services. The measure of
inflation is the retail price index excluding interest payments on loans to purchase real estate
(RPI-X). The Retail Price Index calculated by a uniform formula for comparison with similar
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indices in other countries, is called harmonized (HICP). If the index growth exceeded the
planned value, the Bank of England usually raises interest rates. It has a significant impact on
the market.

Release Schedule: 09:30 GMT, 8-13 months after the reporting period.
Retail Sales
It is an indicator of the level of consumption. If the level of consumption is above the level of
production, this usually leads to inflation. It should be noted that the index of Retail Sales for
a month is very volatile. The index value averaged for three months describes the situation
better. The indicator is taken into account by the market.
Rightmove House Price Index (HPI)
The price change for a month requested by sellers from Rightmove - the largest Internet real
estate portal in the UK. This figure comes out the first, but it has very limited impact on the
market as it characterizes the state of demand prices. In reality the prices of supply and
demand do not always correlate.
Source: Rightmove.
Unemployment (Claimant count rate)
Unemployment rate is the number of unemployed persons in relation to the working-age

population. Claimant count is the most regular unemployment rate, it means the number of
applications of unemployed persons in employment centers. The lower unemployment rate is,
the greater is the number of people that are paid a salary, this causes inflation. The indicator
is taken into account by the market.
Unit Wage Costs

The index characterizes costs associated with the manufacturing of a production unit. This
indicator reflects worker productivity and the prevailing wage rate for companies in the UK.
If the growth rate of labor costs exceed the rate of productivity growth, it causes inflationary
pressures in the economy. It is released monthly. It has a limited impact on the market.
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Macroeconomic Indicators of Japan

To assess the situation in the Japan, the following macroeconomic indicators are used:
All Industry Activity Index

Balance of Payments
Corporate Goods Price Index (CGPI)
Industrial Production Index
Leading and Coincident Indices of Business Conditions
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Machinery Orders
Retail Sales
Tankan Survey
Tertiary Industry Index
Trade Balance
Unemployment
Wholesale Price Index (WPI)
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All Industry Activity Index

The index shows the level of activity in the industrial sector taking into account all areas of
this segment of the economy. It is a leading indicator taken into account by bidders,
predicting the future dynamics of the production index Tankan.

Release Schedule: 23:50 GMT, 7-8 after the reporting month.
Source: Ministry of Economy, Trade and Industry.
Balance of Payments
The balance of payments systematically summarizes all economic transactions between
residents and nonresidents of the country or geographical area. The balance of payments is
information on international transactions; it includes the country's or territory's current
account balance (goods, services, income, current transfers). It is the difference between the
amount of payments received from abroad, and the amount of payments moving abroad.

Release Schedule: 23:50 GMT, in the middle of the month following the reporting
month, together with the Trade Balance.
Source: Japanese Ministry of Finance.
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Consumer Price Index is the main indicator of inflation in the country. In other words,
inflation reflects a decline in purchasing power of the yen, so for every yen you can buy fewer
goods and services. In terms of measuring inflation, CPI is the most obvious way to quantify
changes in purchasing power.
The report tracks changes in the price of a basket of goods and services. An increase in the
index indicates that it takes more yen to purchase this same set of basic consumer items.
The indicator is taken into account by the market.

Release Schedule: 23:30 GMT,
Source: Ministry of Internal Affairs and Communications.
Corporate Goods Price Index (CGPI)
This indicator measures prices for goods purchased by Japanese corporations. Calculated as a
weighted average of three components: domestic wholesale prices, export wholesale prices
and import wholesale prices. The index's base year is the year 2000. The index is designed for
a more accurate calculation of the price index by taking into account the structural changes
in the Japanese economy. A rising trend has a positive impact on the national currency,
because when trade companies pay more for goods, they are likely to reflect higher costs to
consumers.
Release Schedule: 23:50 GMT, on the eighth business day of the following month.
Source: Bank of Japan.

It is the sum of domestically produced goods and services expressed in prices. The indicator
value, at the time of its release, is usually well-predicted by the market based on other data,
so it rarely affects the market. It is released quarterly. The index value is repeatedly revised.
GDP is considered in the three independent components:

GDP as the sum in money for all goods and services produced by business entities, plus
taxes, minus subsidies on production of certain goods and services.
GDP as the amount of funds spent on consumption of goods and services produced, plus
export, minus import of goods and services.
GDP as the amount of the revenue the economy as a whole (i.e. salaries, taxes, balance
profit of businesses, etc. ).
The index has a significant impact on the market.
Release Schedule: 23:50 GMT, the second month after the reporting period.
Source: Economic and Social Research Institute.
Industrial Production Index
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The index of industrial production. It shows changes in industrial production in the country.
The growth of this index leads to growth of the national currency. It has a significant impact
on the market.
Release Schedule: 23:50 GMT, preliminary index is released at the end of each month,
in two weeks revised figures come out.
Leading and Coincident Indices of Business Conditions
The index of leading indicators is a weighted average of 13 major indicators. It is used for
determining the future state of the economy. The index of coincident indicators is composed
of 11 indicators and is used for assessing the current state of the economy (the 50% level of
the indicator is "zero"). They have little effect on the market.
Release Schedule: 05:00 GMT, two months after the reporting period.
Machinery Orders
The indicator reflects the level of business capital spending and business activity. It is
calculated based on evaluations of more than 300 industrial manufacturers. It has a
significant impact on the market.
Release Schedule: 05:00 GMT, 8-13 months after the reporting period.
Retail Sales
The indicator reflects changes in the level of retail sales. The statistics includes department
stores and supermarkets. Retail Sales Index is one of the indicators of consumer spendings.
Therefore being an indicator of consumer demand and confidence it can serve as a benchmark
for the currency market at the turning points of the economic cycle. It has little impact on
the market.
Release Schedule: 23:50 GMT, a month after the reporting period.
Tankan Survey
this is a quarterly economic review published by the Research and Statistics Department of
the Bank of Japan. Review is based on estimates of more than 8000 companies, firms and
institutions on the following economic parameters:
business conditions;
production and marketing;
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supply and demand, the price level;

income;
direct investment;
employment;
tax conditions.
Tankan is the most important Japanese indicator. The growth of the index indicates
improvement in economic conditions and promotes the growth of the Japanese yen.
Release Schedule: 23:50 GMT, beginning of the month following the reporting period.
Tertiary Industry Index

The index shows the level of activity in the service sector taking into account all areas of this
segment of the economy. It is a leading indicator taken into account by bidders, predicting
the future dynamics of the non-production index Tankan.

Release Schedule: 23:50 GMT, 2nd-3rd week after the reporting period.
Trade Balance
Trade Balance is the difference between the total value of exports and the total value of
imports. A positive trade balance shows the demand of goods of the country on the
international market, as well as the fact that the country does not consume all that it
produces. A negative trade balance suggests that the country consumes foreign goods
together with it own goods.
Because Japan is an export-oriented country, this information gives a critical insight into the
development of the country's economy and changes in foreign exchange rates.
A positive trade balance acts as an appreciating weight on the yen.

Release Schedule: 23:50 GMT, the second week after the reporting period.
Source: Ministry of Finance, Customs Office
Unemployment
A higher unemployment rate reflects the high efficiency of workforce application, but also
can jeopardize economic recovery as it promises accumulation, not consumption. The
indicator is taken into account by the market.
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Release Schedule: 23:30 GMT, the next month after the reporting period.
Source: Japanese Ministry of Health, Labour and Welfare.
Wholesale Price Index (WPI)

WPI measures changes in wholesale prices of goods. Calculated as a weighted average of
three components: domestic wholesale prices, export wholesale prices and import wholesale
prices. WPI is considered a better inflation indicator than CPI, because it directly reflects the
state of the business sector. The indicator is taken into account by the market.

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Macroeconomic Indicators of Germany

To assess the situation in Germany, the following macroeconomic indicators are used:
Balance of Trade
Current Account
IFO Survey
Import Prices
M3 Money Supply
Manufacturing Orders
Manufacturing Production
Retail Sales
Unemployment
Wholesale Index
ZEW Indicator of Economic Sentiment
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Balance of Trade
This is the aggregate of all the trade operations in Germany, including seasonal factors, i.e.
those that can make corrections to the net trade balance. The trade balance represents the
difference between the products manufactured and exported from the country of production
and the volume of products imported into the country. If the trade balance is positive, it
means that the economy is doing well and the trade balance is in a state of surplus. If on the
contrary the trade balance is negative, it is the sign of deficit which affects badly on the
economic processes, on the exchange rate of the national currency, on trust and
creditworthiness of the country.
Trade balance is measured directly in monetary units of the country in which this indicator is
released. Accordingly, the German trade balance is measured in euros. It has little impact on
the market.
Release Schedule: 07:15 GMT, preliminary reports are published about 40 days after the
reporting period.
Source: Federal Statistical Office of Germany.
Current Account
Current Account Balance is an indicator of how the German economy interacts with the rest of
the world. Current Account balance is one of the three components of the country's balance
of payments (Financial Account, Capital Account and Current Account).
The indicator shows the country's detailed accounting of all international interactions. Is the
most common type of balance of international payments. If the proceeds exceed the
payments, the balance is active (has a surplus), otherwise it is passive. In the balance of
payments all foreign economic operations of a country are reflected in monetary terms.
Release Schedule: 07:00 GMT, the second week of the month.
Source: Deutsche Bundesbank
Gross Domestic Product(GDP)

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GDP is a measure of a country's overall economic output. GDP is the aggregate value of all
goods and services produced within a year in the country without dividing the resources used
for their production into imported and domestic. Most often two methods for calculating GDP
are used: first, by adding total incomes in the economy (wages, interest on capital, profits
and rents), secondly, by summing up all the expenses incurred (consumption, investment,
government procurement of goods and services and net exports).
GDP is the main characteristic of the economic success of countries that measures its
economic growth or recovery. GDP growth is an important indicator for the euro. The
strongest reaction of the currency usually happens for quarterly data of the indicator.
IFO Survey
This survey is one of the key indicators of country's business sentiment. The survey is
conducted monthly, querying German firms on the current German business climate as well as
their expectations for the next six months. As the largest economy in the Euro-zone, Germany
is responsible for approximately a quarter of the total Euro-Zone GDP. Consequently, the
German IFO is a significant economic health indicator for the Euro-zone as a whole.
The figures below 100 are an indicator of a slowing down economy, and is clearly regarded by
the market as a negative factor. Values above 100 indicate growing optimism, which in turn
causes the strengthening of the Euro.
The survey presents two equally weighted sub-indices: Current Assessment and Business
Expectations.
Source: CESifo Group.
Import Prices
The indicator tracks changes in the prices paid for imported goods and services. Since for
calculating CPI prices for imported goods and services are taken into account, this indicator
describes the contribution of import prices in the overall picture of changes in retail prices of
the consumer basket. Data on import prices are often used to study the pressure exerted by
changes of foreign exchange rates to the market. Import prices decrease primarily when the
national currency is strong. Economists generally pay attention to the import prices excluding
energy prices, since this component is highly volatile. The indicator reflects the change in
import prices for a month. It is an indicator of inflation.
Release Schedule: 07:00 GMT, at the end of the month.
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This indicator shows the level of change in industrial production in the country. The indicator
takes into account the manufacturing and mining industry, forestry and electricity generation.
M3 Money Supply
It includes all currency in circulation, bank deposits and debt securities up to 4 years.
Deutsche Bundesbank and the European Central Bank treat it as one of the most important
indicators of inflation. Usually the maximum acceptable value of the indicator is set
(acceptable level of inflation defined), and if the indicator exceeds this value, usually
interest rates are increased. The indicator is taken into account by the market.
Source: (Deutsche Bundesbank).
Manufacturing Orders
The indicator shows the change in the number of orders for products manufactured by
German companies. It reflects the country's economic prospects. The indicator is taken into
account by the market.
Manufacturing Production
This indicator shows the volume of products produced by the manufacturing industry. The
index is expressed in prices and is an indicator of economic growth. The data do not have
much importance, because the contribution of manufacturing in gross domestic product is less
than 20%.
The indicator measures the average change in prices for raw materials and goods of
intermediate consumption relative to the basis period. The indicator is used for calculating
the detailed components of the gross national product into the comparable prices. It is the
key indicator of inflationary pressures. The indicator is taken into account by the market.
Retail Sales
The index shows the change in volume of sales in the retail trade. Retail Sales Index is one of
the indicators of consumer spendings. Therefore being an indicator of consumer demand and
confidence it can serve as a benchmark for the currency market at the turning points of the
economic cycle.
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Release Schedule: 07:00 GMT, 1-5th of each month following the reporting month.
Unemployment
It is one of the key indicators of German unemployment. The unemployment rate shows
percentage of individuals in the labor force who are without a job but are seeking one. The
indicator is calculated based on data for the last three months. The index is calculated on the
basis of statistics on the number of applications for employment of unemployed persons in
employment centers, and reflects the ongoing changes in the level of unemployment in the
country. The indicator is very important for Germany and the Eurozone and, therefore, for the
euro. It has a strong impact on the decisions made by politicians and the central bank.
Release Schedule: 08:55 GMT, 30-31th of the reporting period.
Source: Federal Institute of Labour, Germany.
Wholesale Index
It reflects changes in wholesale prices for the month. Usually the growth of wholesale prices
precedes the growth of retail prices; thus the Wholesale Index can be used as a leading
indicator of inflation. It has little impact on the market.
Release Schedule: 07:00 GMT, the second week of the month following the reporting
period.
ZEW Indicator of Economic Sentiment

in order to estimate the country's economic situation. The results are calculation of the
difference between positive and negative reviews.
There are two types of the indicator:

ZEW Economic Expectations Index this indicator is made up of assessments of
expected events the direction of inflation, interest rates and exchange rates over the next
six months.
Zew Current Situation in contrast to the previous indicator, it assesses the current
economic situation. Experts are invited to select one of the variants: "better", "worse" or
"unchanged." The final figure is the difference between positive and negative rates.
High figures indicate a positive economic environment and good business climate.
225
Macroeconomic Indicators of Switzerland

To assess the situation in Switzerland, the following macroeconomic indicators are used:
3 month LIBOR range

Kof Leading Indicator
Retail Sales
SNBs Quarterly Monetary Policy Assessment
Trade Balance
Unemployment Rate
ZEW Economic Expectations
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3 Month LIBOR Range

To control the rates of short-term interest rates, the Swiss National Bank decided to set and
maintain a range of 1.00 for the three-month LIBOR rate for CHF. LIBOR London Interbank
Offered Rate is the interest rate at which large banks are placing loans in the financial
market in London. LIBOR rates are set for different periods and different securities. LIBOR is
fixed daily 11 am London time and is calculated as the average of the last ten quotes of
sellers.
Release Schedule: third Thursday of the month (March, June, September, December).
Source: Swiss National Bank.

The indicator measures changes in retail prices of goods and services purchased by
householders. The Index includes the price level of food, clothing, education expenses,
health, transportation, utilities and leisure. The indicator is calculated monthly and is the
main indicator of inflation in a country, including in Switzerland.
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for their production into imported and domestic. Most often two methods for calculating GDP
are used: first, by adding total incomes in the economy (wages, interest on capital, profits
and rents), secondly, by summing up all the expenses incurred (consumption, investment,
government procurement of goods and services and net exports).
economic growth or recovery. GDP growth is an important indicator for the Swiss franc. The
strongest reaction of the currency usually happens for quarterly data of the indicator.
Source: Swiss Federal Statistical Office.
This is the indicator of dynamics of industrial production defined as a ratio of the current
production in monetary terms to the production in the previous period.
Industrial Production index is very sensitive to business cycles, thus it can predict changes in
employment, wages and personal income. Consequently, Industrial Production is considered a
reliable leading indicator that conveys information about the overall health of the Swiss
economy.
Kof Leading Indicator
The indicator measures the overall economic condition combining 25 leading indicators,
including consumer expectations, house building permits, stock prices and interest rate
spreads.
Source: Konjunkturforschungsstelle Swiss Institute for Business Cycle Research, KOF.
intermediate consumption relative to the basis period. The indicator is used for calculating
the detailed components of the gross national product into the comparable prices. It is the
key indicator of inflationary pressures. It has a moderate impact on the Swiss franc.
Release Schedule: 07:15 GMT, two weeks after the reporting period.
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The indicator reflects the level of business activity of the industrial sector. If after a period of
strengthening PMI begins to show decline, it anticipates the turn of the business cycle,
downward and collapse of industrial activity. If the PMI after reaching a minimum turns
upwards, it is a sign of future recovery.
Release Schedule: 07:30 GMT, the first business week of the month following the
reporting period.
Source: Swiss Association of Purchasing and Materials Management.
Retail Sales
This is the index of change in retail sales. This is an important indicator of consumer
spendings, and is used for calculating the consumer price index. Is measured as a percentage.

SNBs Quarterly Monetary Policy Assessment

This is the rate set by the Swiss National Bank, which serves as a Central Bank, based on
which other financial institutions (commercial banks) set their interest rates on loans and
deposits. The interest rates are one of the most important mechanisms through which the
country's economy is regulated. In particular, issues of economic growth and inflationary
pressure are regulated through the rates.
The market reaction to the interest rates is one of the strongest. In fact, the decision of
central bankers on how the rate will change is a key moment in the determination of markets
in which direction to go. The entire economic policy depends on what interest rate is set at
the moment. The base rate in Switzerland has a floating range of one percent.
Trade Balance
The indicator reflects the difference between the total value of Swiss exports and imports.
Due to its small population and limited resources, foreign trade is very important for the
Swiss economy and trade statistics can have a significant impact on markets.
Switzerland's major trading partners include Germany, France, Italy and the United States.
While Switzerland still exports large amounts of traditional products like chocolate and
watches, today more than half of Swiss exports are in mechanical and electrical engineering
and chemicals.
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A positive Trade Balance indicates a trade surplus, and a negative balance represents a trade
deficit. Trade surpluses indicate that foreigners are buying Swiss goods, which are typically
paid for in Swiss Francs. This translates into greater demand for the currency and upward
pressure on the value of the Franc. During a trade deficit, Swiss consumers have a higher
demand for foreign currencies and this places downward pressure on the value of the Franc.
Release Schedule: 06:15 GMT, a month after the reporting period.
Unemployment Rate
This is the indicator of the percent of unemployed persons in the labor force. The rate is
released as both a seasonally adjusted and unadjusted figure. The seasonally adjusted number
is a key indicator of Swiss labor market conditions, significant because of its timeliness and
overall market impact.
High unemployment translates to lower average wages and reduced consumer spending. As
consumer spending is the majority of total expenditure, rising unemployment often leads to
slow economic growth. In addition, high or rising unemployment puts downward pressure on
interest rates and leads to a depreciating Franc.
Release Schedule: 05:45 GMT, the first week of the month following the reporting
period.
Source: State Secretariat for Economic Affairs.
ZEW Economic Expectations

in order to estimate the country's economic situation. The results are calculation of the
difference between positive and negative reviews.
This indicator is made up of assessments of expected events the direction of inflation,
interest rates and exchange rates over the next six months.
High figures indicate a positive economic environment and good business climate.
230
231
Macroeconomic Indicators of Australia

To assess the situation in Australia, the following macroeconomic indicators are used:
Balance of Payments
Building Approvals
Construction Work Done
Export Price Index
Home Loans
House Price Index
Import Price Index
Labour Price Index
NAB Business Confidence
New Motor Vehicle Sales
Private Sector Credit
RBA Cash Target
Retail Sales
Service PMI
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Trade Balance
Unemployment Rate
Westpac-Melbourne Institute Coincident Index
Westpac-Melbourne Institute Leading Index
Westpac Consumer Confidence
Balance of Payments
This is an accounting record of all monetary transactions between a country and the rest
world. It's the most common form of balance of international payments. If the proceeds
exceed the payments, the balance is active (has a surplus), otherwise it is passive. In the
balance of payments all foreign economic operations of a country are reflected in monetary
terms.
It is the sum of the balance of trade, factor income and cash transfers. Publication of data on
balance of payments has a significant impact on the Australian dollar, the market gives high
importance to this indicator.
Source: Australian Bureau of Statistics.
Building Approvals
Indicator showing the total number of Australian homes and apartments approved for
construction. The indicator reflects future activity in the construction sector and is an
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anticipatory indicator of the rise or fall of this segment of the real estate market. It has a
moderate impact on the Australian dollar.
Release Schedule: 01:30 GMT, the first week of the month.
Construction Work Done

Indicator of aggregate completion of construction works, including new buildings and
alterations to existing ones.
The index is derived from the quarterly statistics on data of construction activities. The
growth of this indicator has a positive impact on the Australian dollar, because high levels of
construction activities positively affect the economy as a whole (the builders buy more
supplies and create new jobs to meet the growing demand in real estate).
Release Schedule: 01:30 GMT, three months after the reporting quarter.
main indicator of inflation in a country, including in Australia. It is considered the most
important indicator of inflation.
Release Schedule: 01:30 GMT, a months after the reporting quarter.
Export Price Index
This is the indicator that reflects changes in the price of exported goods and services. The
index is one of indicators of inflationary pressures. With expectations of an increase in basic
interest rates, the increase of the index leads to an increase in the rate of Australian dollar.

for their production into imported and domestic.
Most often two methods for calculating GDP are used: first, by adding total incomes in the
economy (wages, interest on capital, profits and rents), secondly, by summing up all the
expenses incurred (consumption, investment, government procurement of goods and services
and net exports). GDP is the main characteristic of the economic success of countries that
234
measures its economic growth or recovery. Australia's GDP growth is an important indicator
for the Australian dollar. The strongest reaction of the currency usually happens for quarterly
data of the indicator.
Release Schedule: 01:30 GMT, a quarter after the reporting quarter.
Home Loans
This is an indicator showing the rate of growth in the sector of mortgage lending in Australia.
The indicator signals a change in the lending activity in the housing market and is therefore
an anticipatory indicator of some indicators in the construction and real estate sectors, as
well as indexes of consumer confidence and optimism. The reaction of the Australian dollar on
the release of this indicator is moderate.
Release Schedule: 01:30 GMT, the first week of the month.
House Price Index
Tracks changes in housing prices in Australia's eight provincial capital cities: Sydney,
Melbourne, Brisbane, Adelaide, Perth, Hobart, Darwin, and Canberra. The headline number is
the weighted average percentage change from the previous quarter. Like any price index, the
housing price indexes measure inflationary pressures, in this case specifically from the
housing sector.
Release Schedule: 01:30 GMT, two months after the reported quarter.
Import Price Index

The indicator tracks changes in the prices paid for imported goods and services. Since for
calculating CPI prices for imported goods and services are taken into account, this indicator
describes the contribution of import prices in the overall picture of changes in retail prices of
the consumer basket. Data on import prices are often used to study the pressure exerted by
changes of foreign exchange rates to the market. Import prices decrease primarily when the
national currency is strong. Economists generally pay attention to the import prices excluding
energy prices, since this component is highly volatile.

Labour Price Index

235
The indicator measures quarterly changes in Australian wages. The index includes wages,
benefits to employees, health care expenses, pensions and benefits mandated by the
government (social security, unemployment benefits and free medical care). When the cost of
free medical care increases, LPI is among the first indicators that reflect the rise in inflation
(in addition to traditional inflation indicators).
NAB Business Confidence

The indicator measures the current business conditions in Australia. The indicator is
concluded from a survey of around 350 companies.
This comprehensive study allows to evaluate the state of the Australian economy. Unexpected
results can affect the markets.
National Bank of Australia releases monthly and quarterly reports. The quarterly report is
more comprehensive, polling more than 1000 companies of various sizes. The study excludes
the agricultural sector due to seasonal fluctuations, as well as the state protection.
Release Frequency: monthly and quarterly.
Source: National Australian Bank.
New Motor Vehicle Sales
The indicator tracks automobile sales in Australia. Though motor vehicle sales are a small
component of the overall economy, expenditures of such "big-ticket" items give good insight
into consumer's spending ability. Additionally, the figure gauges consumer confidence;
consumers and businesses are only likely to make the outlays needed for motor vehicles if
they are optimistic about their current and future economic well being.
Release Schedule: 01:30 GMT, on approximately the 20th of the following month.
Private Sector Credit
This is an indicator showing the rate of growth in the sector of private crediting in Australia.
The indicator is not very significant in terms of influencing the dynamics of the Australian
dollar in the international foreign exchange market, however, is an anticipatory indicator
which may help to track possible overheating in the banking sector, in particular, the issues of
credit activity.
Source: Reserve Bank of Australia.
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intermediate consumption relative to the basis period. Because PPI analyzes changes in price
that occur before the good reaches the retail level, it gives an early indication of inflationary
pressures consumers will later face for finished goods.
Release Schedule: 01:30 GMT, quarterly, on approximately the 20th of the month
following the end of the reporting quarter.

Level of business activity of the industrial sector. If after a period of strengthening PMI begins
to show decline, it anticipates the turn of the business cycle, downward and collapse of
industrial activity. If the PMI after reaching a minimum turns upwards, it is a sign of future
recovery.
RBA Cash Target

This is the rate set by the Reserve Bank of Australia, based on which other financial
institutions (commercial banks) set their interest rates on loans and deposits. The interest
rates are one of the most important mechanisms through which the country's economy is
regulated. In particular, issues of economic growth and inflationary pressure are regulated
through the rates.
The market reaction to the interest rates is one of the strongest. In fact, the decision of
central bankers on how the rate will change is a key moment in the determination of markets
in which direction to go. The entire economic policy depends on what interest rate is set at
the moment. The interest rate is measured in percentage or basis points. The formal change
of the rate is possible at 0.01% (1 basis point), but as a rule the real change occurs at 0.25%
(25 basis points).
Release Frequency: monthly, except January.
Source: Reserve Bank of Australia.
Retail Sales
Measure of the total monthly sales of goods and services by retail stores in Australia. Retail
Sales is an important measure of consumer spending and inflationary pressures in Australia.
Steady increases in retail sales apply significant inflationary pressures to consumer prices.
Release Schedule: 22:45 GMT, monthly, roughly 30 days following the end of the
reporting month.
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Service PMI
The indicator is determined based on monthly surveys of executives in the services sector.
The purpose of the survey is to assess changes in the industry.
Figures of the index below 50 basis points are a signal to a slowing economy in Australia. The
formation of the final indicator is influenced not only by objective factors but also by
psychological ones (subjective assessment of respondents). This adds weight to Service PMI,
and therefore bidders pay attention to this indicator.
Trade Balance
The trade balance figure is simply the difference between the amount of exported and
imported goods and services for the reported month.
If the trade balance is positive, it means that the economy is doing well and the trade
balance is in a state of surplus. A negative trade balance (deficit) reflects badly on the
creditworthiness of the country. Trade balance is measured directly in monetary units of the
country in which this indicator is released. Accordingly, Australia's trade balance is measured
in Australian dollars.
Release Schedule: 01:30 GMT, near the end of every month.
Unemployment Rate
This is the indicator of the percent of unemployed persons in the labor force. The
Unemployment Rate serves as a leading indicator of the health of the labor market. The
report is very timely, coming out just a few weeks after the reporting period. Additionally, the
indicator has a significant impact on the market because of the overall importance of
employment for the economy.
Higher unemployment leads to less income for Australian workers who, in turn, may reduce
consumption. As consumer spending contributes to a majority of Australia's GDP, developments
in the labor market directly affect prospects for Australian growth.
Release Schedule: 01:30 GMT, monthly, mid-month following the reporting month's end.
Westpac-Melbourne Institute Coincident Index
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The indicator reflects the current economic activity in Australia. It is a generalized indicator
of the index of leading indicators and a measure of sustainable economic development of the
country.
Source: Westpac-Melbourne Institute Survey of Consumer Sentiment.
Westpac-Melbourne Institute Leading Index
The weighted average calculated by the combination of leading indicators to predict the state
of the economy. Leading indicators include figures of production orders, applications for
unemployment benefits, rates of money supply, average workweek, building permits, the
price of the underlying stocks, orders for durable goods, consumer confidence index.
Source: Westpac-Melbourne Institute Survey of Consumer Sentiment.
Westpac Consumer Confidence
This indicator measures the level of consumer confidence in the current economic conditions.
The indicator is calculated on the basis of monthly survey in which respondents assess the
prospects of the economy. It has a moderate impact on the financial market, since it may not
reflect the real economic situation in the country. Nevertheless, the consumer confidence
index has traditionally been used for the prediction on trends of employment and the general
state of the economy. The growth of the indicator is a positive factor for the currency. Its
decline, in contrast, leads to a fall of the Australian dollar.
Source: Australian Industry Group.
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Macroeconomic Indicators of Canada

To assess the situation in Canada, the following macroeconomic indicators are used:
Average Weekly Earnings

BOC Interest Rate Decision
Building Permits
Core CPI
Current Account
Housing Starts
International Security Transactions
Ivey Purchasing Managers Index
Labor Productivity
Leading Indicators
Manufacturing Survey Shipments
New Housing Price Index
New Vehicle Sales
Overnight Rate Target
Payroll Employment
Raw Materials Price Index
Retail Sales
Retail Sales Excluding Motor Vehicles
Trade Balance
Unemployment Rate
Unit Labor Cost
Wholesale Sales
240
Average Weekly Earnings
The indicator shows the dynamics of change in the average salary calculated based on the
number of labor hours per week.
Release Schedule: 08:30 EST.
Source: Statistics Canada.
BOC Interest Rate Decision

This is the rate set by the Bank of Canada, based on which other financial institutions
(commercial banks) set their interest rates on loans and deposits. A decision to lower interest
rates can spur economic growth while increasing the inflationary pressure, whereas the
increase in rates leads to lower inflation but also slows down the economy growth.
The Bank of Canada's rate decision has significant influence on financial markets. Changes in
rates have a direct impact on interest rates for consumer loans, mortgages, and bond rates.
Source: The Bank of Canada.
Building Permits
The indicator reflects the number of new building projects authorized for construction. The
indicator is widely used to assess real estate market, since receiving a building permit is the
first step in the building process. Thus, the growth of the indicator reflects the growth in the
construction sector. Also, due to the high outlays needed for construction projects, the
indicator reflects the corporate and consumer optimism. Additionally it can act as a leading
indicator for the economy as a whole.
Release Schedule: 08:30 EST, on the first week of the reporting month.
241
Measures the extent to which Canadian manufacturing companies make use of their
productive capacity (factories and machinery). It acts as an indicator of overall demand in the
economy. High Capacity Utilization Rates reflect that resources are in high demand, and this
exerts inflationary pressures. High Capacity Utilization Rates may also lead to new capital
investments.
Release schedule: 08:30 EST, roughly two and half months after the reporting period.
main indicator of inflation in the country. It is considered the most important indicator of
inflation.
Release Schedule: 08:30 EST, around the 20th of each month.
Core CPI
The indicator is a calculation of inflation in the consumer basket, but without particularly
mobile inflationary components - electricity, fuel and foodstuffs. Since these three measures
can vary in price quickly, depend on a number of situational and seasonal factors, they are cut
off to get a clear indicator of inflation. Thus, together with CPI you can immediately see the
value in its core that helps to understand how inflation has changed over the reporting
period.

Release Schedule: 08:30 EST, around the 20th of each month.
Current Account
terms.
242
balance of payments has a significant impact on the Canadian dollar, the market gives high
importance to this indicator.

manufactured goods and services.
economic growth or recovery. GDP growth is an important indicator for the Canadian dollar.
Housing Starts
Indicator showing the number of buildings that appear each month. The start of construction
is considered to be laying the foundation for future building. The index is a leading indicator
of economic activity in the construction sector.
Release Schedule: 08:15 EST, one week after the reporting month.
International Security Transactions
The indicator shows the difference between the inflow of foreign capital and outflows from
the country. The indicator helps to evaluate the demand of foreigners for Canadian
investments and the Canadian dollar. A positive balance reveals that more capital is entering
Canada than leaving. This is a signal of the currency growth. A negative balance reflects the
worsening economic trends and the fall of the Canadian dollar rate.
Release Schedule: 08:30 EST, two months after the reporting period.
Ivey Purchasing Managers Index

243
The indicator reflects the level of business activity of the industrial sector. More than one and
a half hundred managers from different regions and sectors are asked to assess the level of
their purchases as compared to the previous month (higher, lower or the same). The value
above 50 indicates an increase in purchases, a value below 50 indicates a decrease.
This indicator can be used to measure business optimism and forecast economic growth.
Companies increase purchases and spending in response to growing demand for their goods
and services.
Release Schedule: 10:00 EST, on the fourth working day of the following month.
Source: Purchasing Management Association of Canada, the Richard Ivey School of
Business.
Leading Indicators
The weighted average calculated by the combination of leading indicators to predict the state
of the economy. Leading indicators include figures of production orders, applications for
unemployment benefits, rates of money supply, average workweek, building permits, the
price of the underlying stocks, orders for durable goods, consumer confidence index.
The basic value (100) for comparison is the initial 1992. Each point above 100 indicates a 1%
improvement rate compared with 1992 values.
Release Schedule: 08:30 EST, around the 3rd week of the month.
Manufacturing Survey Shipments
The indicator tracks the volume of shipments of manufactured goods. This allows us to
evaluate whether manufacturing companies satisfy the market demands. The growth of the
indicator suggests that economic activity in Canada has increased, its decrease indicates the
decline in business activity.
New Housing Price Index

The index reflects changes in prices for new housing and is part of CPI. Increase in housing
prices suggests an increase in consumer demand and growth of the real estate market. At the
same time, high real estate prices that accompany economic expansion often lead to
inflationary pressures.

Release Schedule: 08:30 EST, a week after the reporting month.
244
New Vehicle Sales
The indicator measures the volume of sales of new cars. It is used for assessing the economic
outlook: the higher the level of sales is, the stronger the domestic needs of the population
are. It has little impact on the Canadian dollar.
Overnight Rate Target

This is the rate of interest, which the Bank of Canada wants to see as an average rate in the
market of short-term deposits. The overnight rate target from the Bank of Canada is the main
interest rate in the country, this is the main rate in the relationship of major financial
institutions. To control the level of interest rates in the overnight market Bank of Canada sets
the so-called operating range of 0.50, the middle of which is always the Overnight Rate
Target.
Source: The Bank of Canada.
Payroll Employment
The indicator shows the number of jobs created and lost during a certain period. The index
tracks the dynamics of employment in the labor market, demonstrating either its expansion
(increase in labor demand and the creation of new jobs) or restriction (job cuts). Increasing
employment is usually accompanied by a large consumption and expenditure of the
population. At the same time, high levels of employment, expenditures and consumption can
lead to increased inflationary pressures that may affect the monetary policy of the banks. If
the Bank of Canada raises the interest rates, the Canadian dollar will rise.
Release Schedule: 07:00 EST, the first week of the month following the reporting
period.
245
intermediate consumption relative to the basis period. Because it analyzes changes in price
that occur before the good reaches the retail level, it gives an early indication of inflationary
pressures consumers will later face for finished goods.
Release Schedule: 08:30 EST,
Raw Materials Price Index

This is a composite indicator that reflects the change in value of the raw materials needed for
manufacturing and industry. The indicator tracks the inflation component, and it can be used
as a leading indicator of future production costs, as well as to predict the dynamics of growth
in the industry and increase/decrease of PPI.

Release Schedule: 08:30 EST,
Retail Sales
This is the index of change in retail sales. This is an important indicator of consumer
spendings, and is used for calculating the consumer price index. An increasing number of sales
can signal consumer confidence and growth to come, but higher consumption can also lead to
inflationary pressures.
Retail Sales Excluding Motor Vehicles
The indicator shows the volume of retail sales excluding car sales, which amounts to about
25% of the total retail sales in the country. This is an important indicator of consumer
spendings, and is used for calculating the consumer price index.
Trade Balance
246
country in which this indicator is released. Accordingly, Canada's trade balance is measured in
Canadian dollars.
Unemployment Rate
The percentage of people in the total - labor force without jobs but willing to work and are
actively seeking employment. Low unemployment rate indicates good economic state, leading
to greater personal income and greater consumption. However, such increased expenditure
with economic growth may increase inflationary pressures. On the other hand, higher
unemployment leads to lower consumption and lower economic growth. The unemployment
rate is one of the most watched indicators in the Canada's labor market.
Release Schedule: 07:00 EST, the first week of the month.
Unit Labor Cost
The indicator shows the dynamics of change of the labor component in the price of goods
(adjusted for inflation). Unlike the situation in the Eurozone and the weak impact on the
euro, the indicator released for Canada has a large influence on the Canadian dollar and, at
the same time, is a strong indicator of the labor market state.
The indicator reflects the dynamics of changes in inventories at the warehouses. The measure
of wholesale inventories is based on the data on wholesale sales.
Wholesale Sales
The indicator measures the total sales for the period at the wholesale level. If the index is
growing, it has a positive impact on the national currency, since the sales growth is a good
leading signal that a high consumer demand at the retail level is expected.
247
Macroeconomic Indicators of China

To assess the situation in China, the following macroeconomic indicators are used:
Customer Price Index (CPI)

Retail Sales
248
249
Customer Price Index (CPI)
The index measures changes in prices of goods and services purchased by consumers. When
calculating this index an average price for various goods and services is determined and then
compared with the results of the previous year. A large portion of the overall inflation is that
on consumer prices. Inflation is important for assessing the value of the currency, as higher
prices lead to retaliatory steps of the Central Bank in the form of higher interest rates.
Source: National Bureau of Statistics of China.

Gross domestic product (GDP) is the market cost of goods and services produced within a
certain period. GDP growth is accompanied by the rise of the economy and leads to an
increase in the exchange rate, as well as an increase of stocks in the equity market. For the
bond market, GDP growth will be a negative signal. Since GDP growth often leads to an
increase in interest rates, the interest in bonds as in instruments with fixed income will fall
and their yields will rise accordingly.
GDP is the most important indicator reflecting the state of the national economy.
It is a major indicator of economic health: the production is the main driving force behind the
country's economic system and reacts quickly to the ups and downs of the business cycle.
This indicator calculates the change in the total value of products produced in mining and
manufacturing, as well as services taking into account inflation.
The index shows changes in the prices of goods purchased and sold by manufacturers. Because
it analyzes changes in price that occur before the good reaches the retail level, it gives an
early indication of inflationary pressures consumers will later face for finished goods. The
indicator is taken into account by the market, but has a limited impact on the it.
250
Retail Sales
The indicator shows the change in total sales at the retail level. If the level of consumption is
above the level of production, this usually leads to inflation. Retail sales have a moderate
impact, since consumer spendings are not the key factor for China's economy. It is an
indicator of the level of consumption.
251
Macroeconomic Indicators of New Zealand

To assess the situation in New Zealand, the following macroeconomic indicators are used:

Balance of Payments
Building Permits
Food Price Index
Labour Cost Index
Manufacturing Activity
NBNZ Business Confidence
RBNZ Meeting Announcement
Retail Sales
Trade Balance
Unemployment Rate
252
The indicator shows the labor cost in terms of hourly wages set by government authorities.
The indicator has little influence on the national currency.
Source:Statistics New Zealand.
Balance of Payments
terms.
balance of payments has a significant impact on the New Zealand dollar, the market gives
high importance to this indicator.
Building Permits
The indicator reflects the number of new building projects authorized for construction. The
indicator is widely used to assess real estate market, since receiving a building permit is the
first step in the building process. Thus, the growth of the indicator reflects the growth in the
construction sector. Also, due to the high outlays needed for construction projects, the
indicator reflects the corporate and consumer optimism. Additionally it can act as a leading
indicator for the economy as a whole.

253
main indicator of inflation in the country. It is considered the most important indicator of
inflation.
Food Price Index

The indicator reflects changes in food prices. Higher food prices can result in economic
slowdown because less disposable income will be used for non-food expenditures. Higher food
prices can also result in inflation and signal future monetary action.
The indicator has little influence on the New Zealand dollar and is only important from the
perspective of the fact that New Zealand is an agricultural country, and a substantial part of
its GDP is export of agricultural products. Thus, the indicator reflects the needs of products of
New Zealand and its national currency.
Release Schedule: 22:45 GMT, 1-2 weeks after the reporting month.

manufactured goods and services.
economic growth or recovery. GDP growth is an important indicator for the New Zealand
dollar.
Release Schedule: 22:45 GMT, two months after the reporting period.
Labour Cost Index

The indicator reflects the quarterly change in wages and other income received by working
population. Rising values have a positive effect on the national currency, because when
companies pay more for labor they are likely to transfer their costs to the end consumer,
which in turn affects the Consumer Price Index.

254
Manufacturing Activity / index of business activity in industry

A report released by Business New Zealand commenting on the PMI, the New Zealand
manufacturing sector, and noteworthy trends. Increased activity in the manufacturing sector
is usually a precursor to economic expansion and inflationary pressures.
This index summarizes key points regarding the data gathered by the monthly business surveys
sent to manufacturers and gives a concise breakdown of how optimistic manufacturers feel in
the short-term.
Source: Business New Zealand.
NBNZ Business Confidence
This is a monthly measure of New Zealand business confidence. Representatives of New

Zealand's businesses are surveyed about their outlook for the next 12 months. Positive
sentiment bodes well for the economy, usually associated with higher employment, rising
income, and increased investment due to expectations of economic expansion. The index is a
good leading indicator of the direction of the economy.
Release Frequency: monthly, except January.
Release Schedule: 13:00 GMT, the last day of the reporting period.
Source: National Bank of New Zealand.
This indicator is defined as the change in the prices of components and semifinished products
in the industry (the growing "input" prices may have no influence on the inflation index, as
there can be reduction of costs in the production process). The indicator has a strong
influence on the market and, in particular, on the New Zealand dollar.
This indicator is defined as the change in the level of manufacturer's selling prices in the
industry. It is a string indicator of inflation. It reflects inflationary pressures on the economy
from the side of manufacturers. It has a significant impact on the market.
255
The indicator reflects the level of business activity of the industrial sector. PMI is calculated
based on the monthly survey conducted in the manufacturing sector and is divided into five
sub-indexes: production, employment, new orders, stocks of finished products and delivery.
The basic value for the index calculation is 50. Figures above this level indicate expansion of
economy. Higher activity in the manufacturing sector generally anticipates economic growth
and inflationary pressures.
Source: Business New Zealand.
RBNZ Meeting Announcement
This is the rate set by the Central Bank of New Zealand, based on which other financial
institutions (commercial banks) set their interest rates on loans and deposits. The interest
rates are one of the most important mechanisms through which the country's economy is
regulated. In particular, issues of economic growth and inflationary pressure are regulated
through the rates. The market reaction to the interest rates is one of the strongest.
Source: Reserve Bank of New Zealand
Retail Sales
This is the index of change in retail sales. Since consumption makes a large contribution to
the GDP of New Zealand, a rising Retail Sales figure can be indicative of rising demand and
subsequent inflation. Uncontrolled growth and rising inflation may lead to instability and
corrective action from the country's central bank. It has a significant influence on the
markets.
Release Frequency: monthly and quarterly.
Trade Balance
country in which this indicator is released. Accordingly, New Zealand's trade balance is
measured in New Zealand dollars.
256
Unemployment Rate
The percentage of people in the total - labor force without jobs but willing to work and are
actively seeking employment. Low unemployment rate indicates good economic state, leading
to greater personal income and greater consumption. However, such increased expenditure
with economic growth may increase inflationary pressures. On the other hand, higher
unemployment leads to lower consumption and lower economic growth.
257

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MT5 TRADING MANUAL

Signals to Sell.................................................................................................... 149

Jobless Claims (Initial Claims)...............................................................................163

Average Earning Growth....................................................................................... 177

Home Loans......................................................................................................... 201

Retail Sales Excluding Motor Vehicles....................................................................211

The following is available here:

Operations with Objects

Working with Objects in a Chart

Creating Object Copies

Object properties open the selected object properties window;

Objects List open the window with the list of objects;

Delete delete the selected object;

Delete All Arrows delete all objects of the arrow type;

Delete All Selected delete all selected objects;

Undo Delete cancel deletion of the last object.

Horizontal line can be used to mark various levels, particularly, those of

There are the following parameters of a vertical line:

Date/Value coordinates of the initial point (date/value of the price scale);

Date/Value coordinates of the initial point (date/value of the price scale);

Date/Value coordinates of the initial point (date/value of the price scale);

Standard Deviation Channel

Standard deviation is the way of volatility measuring based on statistical

Regression channel is a statistical analysis tool used for forecasting of

Ray Right infinite duration of the channel to the right;

Standard Deviation Channel

Ray Left infinite duration of the channel to the left;

Date/Value coordinates of the beginning point of Andrews' Pitchfork "handle"

Date/Value coordinates of the initial point (date/value of the price scale);

Date/Value coordinates of the initial point (date/value of the price scale);

Date/Value coordinates of the initial point (date/value of the price scale);

Leonardo Fibonacci is considered to have discovered a number sequence where

Fibonacci Time Zones

Fibonacci Time Zones represent a row of vertical lines placed at Fibonacci

Fibonacci Time Zones

Corrective waves (rollbacks) are characterized by moving against the trend.

Elliott Wave Theory

Elliott Wave Theory and Fibonacci Numbers

0.382, 0.5 or 0.618 of Wave 1 length

1.618 or 2.618 of Wave 1 length

0.382 or 0.5 of Wave 1 length

0.382, 0.5 or 0,618 of Wave 1 length

0.382, 0.5 or 0,618 of Wave 1 length

0.382 or 0.5 of Wave A length

1.618, 0.618 or 0.5 of Wave A length

To draw the figure two points must be defined. Read more...

To draw the figure three points must be defined. Read more...

To draw the figure three points must be defined. Read more...

The "Thumbs Up" sign anchored to a certain point in a chart.

The "Thumbs Down" sign anchored to a certain point in a chart.

The "Arrow Up" sign anchored to a certain point in a chart.

The "Arrow Down" sign anchored to a certain point in a chart.

The "Stop Sign" anchored to a certain point in a chart.

The "Check Sign" anchored to a certain point in a chart.

Left Price Label

Right Price Label

Placing of any available sign according to a user's choice.

Text intended for adding of comments to the chart. Read more...

Placing of an editable field in a chart window. This object is bound to a chart

Placing a "Rectangle Label" used for creating custom graphical interfaces on a

chart. Read more...

Scale chart scale adjusted using lever;

The object has the following parameters:

Background the object fill color;